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Spatial sorting of African Immigrants in the French Public Housing Market

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  • Benoît Schmutz

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Abstract

This paper documents the existence of sorting patterns based on region of origin in the French public housing market (HLM). We provide evidence that first-generation African immigrants who benefit from the program tend to live in poorer neighborhoods than their French-born counterparts, once controlled for the broader geographical area of residence. This differential is comparable in magnitude to the one observed in the private rental market, even though the pricing of a public rental is almost uncorrelated with its location characteristics. Whereas we cannot rule out the possibility that this sorting partly reflects the specificity of African immigrants’ housing demand, we mitigate this concern by using information on the HLM offers that were previously rejected by the households and on the households’ declared level of satisfaction regarding their current neighborhood. Given that about half of African immigrants live in HLM (against one sixth of the non-immigrant population), this finding has possibly strong consequences on African immigrants’ segregation and welfare in France. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Benoît Schmutz, 2015. "Spatial sorting of African Immigrants in the French Public Housing Market," The Review of Black Political Economy, Springer;National Economic Association, vol. 42(3), pages 247-270, September.
  • Handle: RePEc:spr:blkpoe:v:42:y:2015:i:3:p:247-270
    DOI: 10.1007/s12114-014-9205-y
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    File URL: http://hdl.handle.net/10.1007/s12114-014-9205-y
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    References listed on IDEAS

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    1. Bruno Decreuse & Benoît Schmutz, 2012. "Residential Mobility and Unemployment of African Immigrants in France: A Calibration Approach," Annals of Economics and Statistics, GENES, issue 107-108, pages 51-91.
    2. Pierre‐Philippe Combes & Gilles Duranton & Laurent Gobillon & Diego Puga & Sébastien Roux, 2012. "The Productivity Advantages of Large Cities: Distinguishing Agglomeration From Firm Selection," Econometrica, Econometric Society, vol. 80(6), pages 2543-2594, November.
    3. Claire Dujardin & Florence Goffette-Nagot, 2009. "Does public housing occupancy increase unemployment?," Journal of Economic Geography, Oxford University Press, vol. 9(6), pages 823-851, November.
    4. Claire Dujardin & Florence Goffette-Nagot, 2005. "Neighborhood effects, public housing and unemployment in France," Post-Print halshs-00180046, HAL.
    5. Leung, Charles Ka Yui & Sarpça, Sinan & Yilmaz, Kuzey, 2012. "Public housing units vs. housing vouchers: Accessibility, local public goods, and welfare," Journal of Housing Economics, Elsevier, vol. 21(4), pages 310-321.
    6. Dujardin, Claire & Goffette-Nagot, Florence, 2010. "Neighborhood effects on unemployment?: A test à la Altonji," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 380-396, November.
    7. Patacchini, Eleonora & Zenou, Yves, 2004. "Intergenerational Education Transmission: Neighbourhood Quality and/or Parents' Involvement," CEPR Discussion Papers 4744, C.E.P.R. Discussion Papers.
    8. Verdugo, Gregory, 2011. "Public Housing and Residential Segregation of Immigrants in France, 1968-1999," IZA Discussion Papers 5456, Institute for the Study of Labor (IZA).
    9. Dominique Goux & Eric Maurin, 2007. "Close Neighbours Matter: Neighbourhood Effects on Early Performance at School," Economic Journal, Royal Economic Society, vol. 117(523), pages 1193-1215, October.
    10. Laurent Gobillon & Harris Selod, 2007. "The Effects of Segregation and Spatial Mismatch on Unemployment : Evidence from France," Working Papers 2007-04, Center for Research in Economics and Statistics.
    11. Liliane Bonnal & Rachid Boumahdi & Pascal Favard, 2012. "Nonexpected discrimination: the case of social housing in France," Applied Economics Letters, Taylor & Francis Journals, vol. 19(18), pages 1909-1916, December.
    12. Jean-Louis Pan Ké Shon & Gregory Verdugo, 2015. "Forty years of immigrant segregation in France, 1968–2007. How different is the new immigration?," Urban Studies, Urban Studies Journal Limited, vol. 52(5), pages 823-840, April.
    13. Benoît Schmutz, 2012. "Public Housing Quotas and Segregation," Working Papers halshs-00793467, HAL.
    14. Fack, Gabrielle, 2006. "Are housing benefit an effective way to redistribute income? Evidence from a natural experiment in France," Labour Economics, Elsevier, vol. 13(6), pages 747-771, December.
    15. Nechyba, Thomas J., 2006. "Income and Peer Quality Sorting in Public and Private Schools," Handbook of the Economics of Education, Elsevier.
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    Cited by:

    1. 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.

    More about this item

    Keywords

    R2; J7; Public housing; Segregation; Spatial sorting; Strategic behavior; Rationing;

    JEL classification:

    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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