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

Hilber, Christian A. L. and Liu, Yingchun (2007) Explaining the black-white homeownership gap: the role of own wealth, parental externalities and locational preferences. 124. Geography and Environment Department, London School of Economics and Political Science, London, UK. (Unpublished)

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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 macro-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 own and parental wealth and in the preferred macro-location type are accounted for.

Item Type:	Monograph (Working Paper)
Official URL:	http://www.lse.ac.uk/collections/geographyAndEnvir...
Additional Information:	© 2007 The Authors
Library of Congress subject classification:	H Social Sciences > HD Industries. Land use. Labor
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
Identification Number:	124
Date Deposited:	18 Apr 2008 10:26
URL:	http://eprints.lse.ac.uk/4380/

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