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Rental housing discrimination and the persistence of ethnic enclaves

Author

Listed:
  • M. Angeles Carnero Fernández

    (Universidad de Alicante)

  • Lídia Farré Olalla

    (Universidad de Alicante)

  • Mariano Bosch

    (Universidad de Alicante)

Abstract

We conduct a field experiment to show that discrimination in the rental market represents a significant obstacle for the geographical assimilation process by immigrants. We employ the Internet platform to identify vacant rental apartments in different areas of the two largest Spanish cities, Madrid and Barcelona. We send emails showing interest in the apartments and signal the applicants’ ethnicity by using native and foreign-sounding names. We find that, in line with previous studies, immigrants face a differential treatment when trying to rent an apartment. Our results also indicate that this negative treatment varies considerably with the concentration of immigrants in the area. In neighbourhoods with a low presence of immigrants the response rate is 30 percentage points lower for immigrants than for natives, while this differential disappears when the immigration share reaches 50%. We conclude that discriminatory practices in the rental housing market contribute to perpetuate the ethnic spatial segregation observed in large cities.

Suggested Citation

  • M. Angeles Carnero Fernández & Lídia Farré Olalla & Mariano Bosch, 2011. "Rental housing discrimination and the persistence of ethnic enclaves," Working Papers. Serie AD 2011-10, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasad:2011-10
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    References listed on IDEAS

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    Cited by:

    1. Verena Dill & Uwe Jirjahn, 2011. "Ethnic Residential Segregation and Immigrants' Perceptions of Discrimination in West Germany," Research Papers in Economics 2011-10, University of Trier, Department of Economics.
    2. Verena Dill & Uwe Jirjahn & Georgi Tsertsvadze, 2015. "Residential Segregation and Immigrants’ Satisfaction with the Neighborhood in Germany," Social Science Quarterly, Southwestern Social Science Association, vol. 96(2), pages 354-368, June.
    3. Flage, Alexandre, 2018. "Ethnic and gender discrimination in the rental housing market: Evidence from a meta-analysis of correspondence tests, 2006–2017," Journal of Housing Economics, Elsevier, vol. 41(C), pages 251-273.
    4. Auspurg, Katrin & Schneck, Andreas & Thiel, Fabian, 2020. "Different samples, different results? How sampling techniques affect the results of field experiments on ethnic discrimination," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics.
    5. Alexandre Flage, 2018. "Ethnic and Gender Discrimination in Rental Housing Market, Evidence from Meta-Analysis of Correspondence Tests, 2006-2017," Working Papers 2018-04, CRESE.
    6. de la Rica, Sara & Glitz, Albrecht & Ortega, Francesc, 2013. "Immigration in Europe: Trends, Policies and Empirical Evidence," IZA Discussion Papers 7778, Institute of Labor Economics (IZA).
    7. Cochard, François & Flage, Alexandre & Peterle, Emmanuel, 2019. "Intermediation and discrimination in an investment game: An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 168(C), pages 196-208.

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    More about this item

    Keywords

    immigration; discrimination; spatial segregation.;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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