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Explaining the black–white homeownership gap: the role of own wealth, parental externalities and locational preferences

Hilber, Christian A. L. and Liu, Yingchun (2008) Explaining the black–white homeownership gap: the role of own wealth, parental externalities and locational preferences. Journal of Housing Economics, 17 (2). pp. 152-174. ISSN 1051-1377

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Abstract

African Americans in the United States are considerably less likely to own their homes compared to Whites. Differences in household income and other socio-economic and demographic characteristics can only partially explain this gap and previous studies suggest that the ‘unexplained’ gap has increased over time. In this paper we use the Panel Study of Income Dynamics (PSID) intergenerational data, which provides information on household wealth, parental characteristics and location choice. We find that African–American households are 6.5 percent less likely to own if only traditional explanatory variables are controlled for. However, the black–white homeownership gap disappears if differences in wealth and in the preferred location type (i.e., a broad location classification based on the degree of urbanization of the place of residence) are accounted for.

Item Type: Article
Official URL: http://www.journals.elsevier.com/journal-of-housin...
Additional Information: © 2008 Elsevier
Library of Congress subject classification: H Social Sciences > HN Social history and conditions. Social problems. Social reform
H Social Sciences > HB Economic Theory
Journal of Economic Literature Classification System: R - Urban, Rural, and Regional Economics > R3 - Production Analysis and Firm Location > R31 - Housing Supply and Markets
R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R21 - Housing Demand
J - Labor and Demographic Economics > J7 - Labor Discrimination > J71 - Discrimination
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J62 - Job, Occupational, and Intergenerational Mobility
Sets: Departments > Geography and Environment
Collections > Economists Online
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 21 Apr 2008 14:39
URL: http://eprints.lse.ac.uk/4371/

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