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Why do real estate brokers continue to discriminate? Evidence from the 2000 Housing Discrimination Study

  • Zhao, Bo
  • Ondrich, Jan
  • Yinger, John

This paper studies racial and ethnic discrimination in discrete choices by real estate brokers using national audit data from the 2000 Housing Discrimination Study. It uses a fixed effects logit model to estimate the probability that discrimination occurs and to study the causes of discrimination. The data set makes it possible to control for auditors' actual demographic and socioeconomic characteristics, along with the characteristics assigned for the purposes of the audit. The study finds that discrimination continues to be strong but also documents a downward trend in both the scope and incidence of discrimination since 1989. The estimations also identify both brokers' prejudice and white customers' prejudice as causes of discrimination.

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Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 59 (2006)
Issue (Month): 3 (May)
Pages: 394-419

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Handle: RePEc:eee:juecon:v:59:y:2006:i:3:p:394-419
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622905

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  1. Raymond Fisman & Mayank Raturi, 2003. "Does Competition Encourage Credit Provision? Evidence from African Trade Credit Relationships," NBER Working Papers 9659, National Bureau of Economic Research, Inc.
  2. Marianne Bertrand & Sendhil Mullainathan, 2003. "Are Emily and Greg More Employable than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," NBER Working Papers 9873, National Bureau of Economic Research, Inc.
  3. Heckman, James J & Walker, James R, 1990. "The Relationship between Wages and Income and the Timing and Spacing of Births: Evidence from Swedish Longitudinal Data," Econometrica, Econometric Society, vol. 58(6), pages 1411-41, November.
  4. Jan Ondrich & Stephen Ross & John Yinger, 2001. "Now You See it, Now You Don't: Why Do Real Estate Agents Withhold Available Houses from Black Customers?," Working papers 2001-01, University of Connecticut, Department of Economics, revised Aug 2002.
  5. Christian, Charles W. & Gupta, Sanjay & Lin, Suming, 1993. "Determinants of Tax Preparer Usage: Evidence from Panel Data," National Tax Journal, National Tax Association, vol. 46(4), pages 487-503, December.
  6. Ondrich, Jan & Ross, Stephen L. & Yinger, John, 2000. "How Common is Housing Discrimination? Improving on Traditional Measures," Journal of Urban Economics, Elsevier, vol. 47(3), pages 470-500, May.
  7. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
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  9. Leslie Whittington, 1992. "Taxes and the Family: The impact of the tax exemption for dependents on marital fertility," Demography, Springer, vol. 29(2), pages 215-226, May.
  10. Margery Austin Turner & Erin Godfrey & Stephen L. Ross & Robin R. Smith, 2003. "Other Things Being Equal: A Paired Testing Study of Discrimination in Mortgage Lending," Working papers 2003-09, University of Connecticut, Department of Economics, revised May 2004.
  11. John Yinger, 1998. "Evidence on Discrimination in Consumer Markets," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 23-40, Spring.
  12. Yinger, John, 1997. "Cash in Your Face: The Cost of Racial and Ethnic Discrimination in Housing," Journal of Urban Economics, Elsevier, vol. 42(3), pages 339-365, November.
  13. Newell, Richard & Anderson, Soren, 2002. "Information Programs for Technology Adoption: The Case of Energy-Efficiency Audits," Discussion Papers dp-02-58, Resources For the Future.
  14. Ondrich, Jan & Stricker, Alex & Yinger, John, 1999. "Do Landlords Discriminate? The Incidence and Causes of Racial Discrimination in Rental Housing Markets," Journal of Housing Economics, Elsevier, vol. 8(3), pages 185-204, September.
  15. Choi, Seok Joon & Ondrich, Jan & Yinger, John, 2005. "Do rental agents discriminate against minority customers? Evidence from the 2000 Housing Discrimination Study," Journal of Housing Economics, Elsevier, vol. 14(1), pages 1-26, March.
  16. Page Marianne, 1995. "Racial and Ethnic Discrimination in Urban Housing Markets: Evidence from a Recent Audit Study," Journal of Urban Economics, Elsevier, vol. 38(2), pages 183-206, September.
  17. Margery A. Turner & Stephen Ross & George C. Galster & John Yinger, 2002. "Discrimination in Metropolitan Housing Markets: National Results from Phase 1 of the Housing Discrimination Study (HDS)," Working papers 2002-16, University of Connecticut, Department of Economics.
  18. Judith Rich & Peter Riach, 2002. "Field experiments of discrimination in the market place," Natural Field Experiments 00328, The Field Experiments Website.
  19. Sanders Korenman & Christopher Winship, 1995. "A Reanalysis of The Bell Curve," NBER Working Papers 5230, National Bureau of Economic Research, Inc.
  20. Zhao, Bo, 2005. "Does the number of houses a broker shows depend on a homeseeker's race?," Journal of Urban Economics, Elsevier, vol. 57(1), pages 128-147, January.
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