Black-White Segregation, Discrimination, and Home Ownership
The effect of discrimination on black-white racial segregation is studied using a confidential supplement of the Panel Study of Income Dynamics (PSID). Audit studies reveal that the rate of discrimination in rental housing is substantially higher than in owner-occupied housing. Thus, a variable indicating home ownership is used to proxy for the discrimination rate faced by blacks. The fixed-effects estimates of segregation imply that home ownership is associated with a decline in black-white segregation. This effect decreases slightly at higher income levels but increases substantially with the education of the head of household. Evidence is presented that the effect of discrimination on segregation disappears in cross-sectional data but reappears when using a panel and controlling for fixed-effects. The findings of this study suggest that increased government enforcement of fair housing laws may have a quantitatively different effect on different segments of society and that future research on racial segregation should emphasize the use of panel, as opposed to cross-sectional, data.
|Date of creation:||Aug 2001|
|Date of revision:|
|Contact details of provider:|| Postal: 300 S. Westnedge Ave. Kalamazoo, MI 49007 USA|
Web page: http://www.upjohn.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-93, May.
- David M. Cutler & Edward L. Glaeser, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, Oxford University Press, vol. 112(3), pages 827-872.
- 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.
When requesting a correction, please mention this item's handle: RePEc:upj:weupjo:01-71. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.