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Neighbor discrimination theory and evidence from the French rental market

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  • Combes, Pierre-Philippe
  • Decreuse, Bruno
  • Schmutz, Benoît
  • Trannoy, Alain

Abstract

This paper describes a novel concept of customer discrimination in the housing market, neighbor discrimination. We develop a matching model with ethnic externalities in which landlords differ in the number of apartments they own within the same building. Larger landlords are more likely to discriminate only if some tenants are prejudiced against the minority group. Observing that minority tenants are less likely than majority group tenants to live in a building with a single large landlord is thus evidence of neighbor discrimination. We show empirically that African immigrants in France are significantly less likely to live in a building owned by a single landlord. This increases the probability that African immigrants live in public housing in localities with more single-landlord private apartment blocks.

Suggested Citation

  • Combes, Pierre-Philippe & Decreuse, Bruno & Schmutz, Benoît & Trannoy, Alain, 2018. "Neighbor discrimination theory and evidence from the French rental market," Journal of Urban Economics, Elsevier, vol. 104(C), pages 104-123.
  • Handle: RePEc:eee:juecon:v:104:y:2018:i:c:p:104-123
    DOI: 10.1016/j.jue.2018.01.002
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    Cited by:

    1. Benoît SCHMUTZ & Grégory VERDUGO, 2020. "Do Politicians Shape the Electorate ? Evidence from French Municipalities," Working Papers 2020-18, Center for Research in Economics and Statistics.
    2. Diagne, Adji Fatou & Kurban, Haydar & Schmutz, Benoit, 2018. "Are inclusionary housing programs color-blind? The case of Montgomery County MPDU program," Journal of Housing Economics, Elsevier, vol. 40(C), pages 6-24.
    3. Mathieu Bunel & Yannick l'Horty & Loic Du Parquet & Pascale Petit, 2017. "Les Discriminations Dans L'Acces Au Logement A Paris : Une Experience Controlee," Working Papers halshs-01521995, HAL.

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    More about this item

    Keywords

    Customer discrimination; Matching frictions; Neighborhood externalities; Housing market;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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