IDEAS home Printed from https://ideas.repec.org/p/ssb/dispap/547.html
   My bibliography  Save this paper

Discrimination in Europe. Evidence from the Rental Market

Author

Listed:

Abstract

This paper considers statistical discrimination in rental markets, using a rich data set on rental contracts from Norway. We find that tenants born abroad pay a statistically significant and economically important premium for their dwelling units after controlling for a comprehensive set of apartment, individual and contract specific covariates. We also find that the premium is largest for tenants of African origin. Moreover, the children of parents born abroad also face a statistically significant and economically important rental premium.

Suggested Citation

  • Timothy K.M. Beatty & Dag Einar Sommervoll, 2008. "Discrimination in Europe. Evidence from the Rental Market," Discussion Papers 547, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:547
    as

    Download full text from publisher

    File URL: https://www.ssb.no/a/publikasjoner/pdf/DP/dp547.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Borjas, George J, 1995. "Assimilation and Changes in Cohort Quality Revisited: What Happened to Immigrant Earnings in the 1980s?," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 201-245, April.
    2. Madeline Marsden, 1994. "Board issues fair lending policy statement," Financial Update, Federal Reserve Bank of Atlanta, issue Jan, pages 1-1,3.
    3. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
    4. Shelly Lundberg & Richard Startz, 1998. "Race, Information, and Segregation," Working Papers 0047, University of Washington, Department of Economics.
    5. George J. Borjas, 2021. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 2, pages 3-29, World Scientific Publishing Co. Pte. Ltd..
    6. John E. Roemer & Alain Trannoy, 2013. "Equality of Opportunity," Cowles Foundation Discussion Papers 1921, Cowles Foundation for Research in Economics, Yale University.
    7. Nannestad, Peter, 2007. "Immigration and welfare states: A survey of 15 years of research," European Journal of Political Economy, Elsevier, vol. 23(2), pages 512-532, June.
    8. Hubert, Franz, 1995. "Contracting with costly tenants," Regional Science and Urban Economics, Elsevier, vol. 25(5), pages 631-654, October.
    9. 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.
    10. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    11. Allen C. Goodman & Masahiro Kawai, 1985. "Length-of-Residence Discounts and Rental Housing Demand: Theory and Evidence," Land Economics, University of Wisconsin Press, vol. 62(2), pages 93-105.
    12. repec:eee:labchp:v:1:y:1986:i:c:p:693-785 is not listed on IDEAS
    13. Barker, David, 2003. "Length of residence discounts, turnover, and demand elasticity. Should long-term tenants pay less than new tenants?," Journal of Housing Economics, Elsevier, vol. 12(1), pages 1-11, March.
    14. Schwab, Stewart, 1986. "Is Statistical Discrimination Efficient?," American Economic Review, American Economic Association, vol. 76(1), pages 228-234, March.
    15. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Beatty, Timothy K.M. & Sommervoll, Dag Einar, 2012. "Discrimination in rental markets: Evidence from Norway," Journal of Housing Economics, Elsevier, vol. 21(2), pages 121-130.
    2. Stephen L. Ross, 2005. "The Continuing Practice and Impact of Discrimination," Working papers 2005-19, University of Connecticut, Department of Economics, revised Jul 2006.
    3. Antecol, Heather & Cobb-Clark, Deborah A., 2008. "Racial and ethnic discrimination in local consumer markets: Exploiting the army's procedures for matching personnel to duty locations," Journal of Urban Economics, Elsevier, vol. 64(2), pages 496-509, September.
    4. Hanson, Andrew & Hawley, Zackary, 2014. "Where does racial discrimination occur? An experimental analysis across neighborhood and housing unit characteristics," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 94-106.
    5. Lopez Barrera, E., 2018. "Hispanics immigrants in the fields: is discrimination a barrier to get non-agricultural jobs?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276016, International Association of Agricultural Economists.
    6. Song Han, 2011. "Creditor Learning and Discrimination in Lending," Journal of Financial Services Research, Springer;Western Finance Association, vol. 40(1), pages 1-27, October.
    7. Romain Aeberhardt & Julien Pouget, 2007. "National Origin Wage Differentials in France. Evidence from Matched Employer-Employee Data"," Working Papers 2007-15, Center for Research in Economics and Statistics.
    8. Zhao, Bo & Ondrich, Jan & Yinger, John, 2006. "Why do real estate brokers continue to discriminate? Evidence from the 2000 Housing Discrimination Study," Journal of Urban Economics, Elsevier, vol. 59(3), pages 394-419, May.
    9. Valentine Fays & Benoît Mahy & François Rycx & Mélanie Volral, 2021. "Wage discrimination based on the country of birth: do tenure and product market competition matter?," Applied Economics, Taylor & Francis Journals, vol. 53(13), pages 1551-1571, March.
    10. Ahmed, Ali M. & Hammarstedt, Mats, 2008. "Discrimination in the rental housing market: A field experiment on the Internet," Journal of Urban Economics, Elsevier, vol. 64(2), pages 362-372, September.
    11. Esteve Sanromá & Raúl Ramos & Hipólito Simón, 2015. "Portability of Human Capital and Immigrant Overeducation in Spain," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 34(2), pages 223-241, April.
    12. Kyoochul Kim, 2020. "Payment Performance and Residency Discounts in the Rental Housing Market," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 48(4), pages 1168-1197, December.
    13. Acolin, Arthur & Bostic, Raphael & Painter, Gary, 2016. "A field study of rental market discrimination across origins in France," Journal of Urban Economics, Elsevier, vol. 95(C), pages 49-63.
    14. Bernd Fitzenberger & Benjamin Fuchs, 2017. "The Residency Discount for Rents in Germany and the Tenancy Law Reform Act 2001: Evidence from Quantile Regressions," German Economic Review, Verein für Socialpolitik, vol. 18(2), pages 212-236, May.
    15. Hipólito Simón & Raul Ramos & Esteban Sanromá, 2014. "Immigrant Occupational Mobility: Longitudinal Evidence from Spain," European Journal of Population, Springer;European Association for Population Studies, vol. 30(2), pages 223-255, May.
    16. Michael Ewens & Bryan Tomlin & Liang Choon Wang, 2014. "Statistical Discrimination or Prejudice? A Large Sample Field Experiment," The Review of Economics and Statistics, MIT Press, vol. 96(1), pages 119-134, March.
    17. Stephen L. Ross, 2003. "What Is Known about Testing for Discrimination: Lessons Learned by Comparing across Different Markets," Working papers 2003-21, University of Connecticut, Department of Economics, revised Nov 2003.
    18. Romain Aeberhardt & Julien Pouget, 2007. "National Origin Wage Differentials in France," Working Papers 2007-03, Center for Research in Economics and Statistics.
    19. Ahmed, Ali & Hammarstedt, Mats, 2007. "Discrimination in the housing market — a field experiment on the internet," CAFO Working Papers 2007:1, Linnaeus University, Centre for Labour Market Policy Research (CAFO), School of Business and Economics.
    20. Elyakim Kislev, 2017. "Deciphering the ‘Ethnic Penalty’ of Immigrants in Western Europe: A Cross-Classified Multilevel Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(2), pages 725-745, November.

    More about this item

    Keywords

    Statistical Discrimination; Rental Markets; Hedonic Regression;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssb:dispap:547. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: L Maasø (email available below). General contact details of provider: https://edirc.repec.org/data/ssbgvno.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.