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Alternative Measures of Homeownership Gaps Across Segregated Neighboorhoods

Author

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  • Paul Carrillo

    () (Department of Economics/Institute for International Economic Policy, George Washington University)

  • Anthony Yezer

    () (Department of Economics, George Washington University)

Abstract

The dramatic rise in the U.S. homeownership rate from 64% in 1996 to almost 70% in 2005 has prompted increased attention to the relation between homeownership and demographic characteristics of households. The recent rise and sharp decline of subprime lending will likely spur interest in the relation between credit conditions and homeownership gaps. Statistical analysis of these differences or gaps in homeownership between white and minority households follows what has become a highly stylized pattern. Essentially differences in homeownership at the mean or the conditional mean between groups are compared. This study implements a new decomposition technique that identifies the unexplained portion of the gap not only at the mean, but at every percentile of the distribution of the dependent variable. This method was first proposed by Machado and Mata (2005), extended by Albrecht et al. (2006), and has been used in several applications in labor economics. Similar to the labor market application, differences in homeownership gaps at the mean reflect a combination of non- significant differences at the upper end and much larger gaps at the lowest end of the distribution of homeowners.

Suggested Citation

  • Paul Carrillo & Anthony Yezer, 2008. "Alternative Measures of Homeownership Gaps Across Segregated Neighboorhoods," Working Papers 2008-07, The George Washington University, Institute for International Economic Policy.
  • Handle: RePEc:gwi:wpaper:2008-07
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    References listed on IDEAS

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    Cited by:

    1. Laurent Gobillon & Matthieu Solignac, 2014. "Homeownership of immigrants in France," ERSA conference papers ersa14p558, European Regional Science Association.
    2. Shilpi Forhad, 2011. "Mobility Costs and Regional Inequality: Evidence from Bangladesh," Journal of Globalization and Development, De Gruyter, vol. 2(1), pages 1-32, August.
    3. McMillen, Daniel & Shimizu, Chihiro, 2017. "Decompositions of Spatially Varying Quantile Distribution Estimates: The Rise and Fall of Tokyo House Prices," HIT-REFINED Working Paper Series 74, Institute of Economic Research, Hitotsubashi University.
    4. Cobb-Clark, Deborah A. & Sinning, Mathias G., 2011. "Neighborhood diversity and the appreciation of native- and immigrant-owned homes," Regional Science and Urban Economics, Elsevier, vol. 41(3), pages 214-226, May.
    5. Paul E. Carrillo & Jonathan L. Rothbaum, 2016. "Counterfactual Spatial Distributions," Journal of Regional Science, Wiley Blackwell, vol. 56(5), pages 868-894, November.
    6. Pan, Yao, 2016. "Understanding the rural and urban household saving rise in China," Regional Science and Urban Economics, Elsevier, vol. 56(C), pages 46-59.
    7. Paul E. Carrillo & M. Shahe Emran & Gabriela Aparicio, 2011. "Taxes, Prisons, and CFOs: The Effects of Increased Punishment on Corporate Tax Compliance in Ecuador," Working Papers 2011-02, The George Washington University, Institute for International Economic Policy.
    8. Carrillo, Paul E. & Pope, Jaren C., 2012. "Are homes hot or cold potatoes? The distribution of marketing time in the housing market," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 189-197.
    9. Fesselmeyer, Eric & Le, Kien T. & Seah, Kiat Ying, 2012. "A household-level decomposition of the white–black homeownership gap," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 52-62.
    10. Li, Phillip & Mayock, Tom, 2019. "Mortgage characteristics and the racial incidence of default," Journal of Housing Economics, Elsevier, vol. 46(C).
    11. Fesselmeyer, Eric & Le, Kien T. & Seah, Kiat Ying, 2013. "Changes in the white–black house value distribution gap from 1997 to 2005," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 132-141.

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    More about this item

    Keywords

    Homeownership; Race; Quantile regression decomposition;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General

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