Household Location and Race: Estimates of a Multinomial Logit Model

Gabriel, Stuart A.; Rosenthal, Stuart S.

doi:10.2307/1926969

Cited by 96 publications

(80 citation statements)

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“…For example, Nechyba and Strauss (1997) showed that an individual household's location decision is significantly affected by community attributes. The findings of Gabriel and Rosenthal (1989) indicate the influential impact of household socioeconomic and demographic characteristics on community choice. Previous studies in this literature place emphasis on the impact of households' characteristics and neighborhood's attributes on residence choice respectively and/or jointly.…”

Section: Introductionmentioning

confidence: 96%

“…The choice of an optimal level of housing consumption requires that a household gather information regarding the features of potential residences. The characteristics of the housing structure itself will be an important determinant of a household's choice of residence (Quigley, 1976), but other factors also will influence this decision, such as households' individual characteristics (Gabriel and Rosenthal, 1989), and neighborhood's quality (Friedman, 1980;Quigley, 1985;and Nechyba & Strauss, 1997). All of these additional determinants have been verified to be significant in a household's location choice.…”

Section: Introductionmentioning

confidence: 99%

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Residential Location Choice: The Role of a Taste for Similarity

Kiefer¹

2012

IJEF

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This paper examines the importance of social interactions on a household's location decision. The theory argues that individuals' utility will be greater when socially interacting with similar others. The hypothesis that a household desires to find a good community match is tested through the application of a discrete residential location choice model. In addition, this paper also tests Tiebout's hypothesis that households search for a community where their benefits from local public goods will exceed their local tax costs. The findings tend to support both hypotheses, indicating that a household prefers neighbors with a similar socio-economic background and somewhat larger houses.

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Section: Introductionmentioning

confidence: 96%

Section: Introductionmentioning

confidence: 99%

Residential Location Choice: The Role of a Taste for Similarity

Kiefer¹

2012

IJEF

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“…3 For example, if the percent of Chinese in an area is above the quota limit for Chinese, then, the Chinese are "segregated", as defined by the Chinese quota limit. 4 There is a vast empirical literature on the causes and consequences of residential segregation (See, for example, Bayer, McMillan, and Rueben (2004);Card, Mas, and Rothstein (2008);Cutler, Glaeser, and Vigdor (1999); Gabriel and Rosenthal (1989)) but fewer studies of the impacts of residential desegregation policies (Banhardt, 2009;Boisjoly, Duncan, Kremer, Levy, and Eccles, 2006;Edin, Fredriksson, and Åslund, 2003;Rosenbaum, 1995). Edin, Fredriksson, and Åslund (2003) focuses on the redistributive benefits of a refugee placement policy in Sweden for refugees.…”

Section: Introductionmentioning

confidence: 99%

Estimating the distortionary effects of ethnic quotas in Singapore using housing transactions

Wong

2014

Journal of Public Economics

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Desegregation is a key policy issue in many countries. I investigate a residential desegregation program in Singapore -the ethnic housing quotas. I show that choice restrictions imposed on apartment blocks above the quota limits (constrained) could have distortionary effects, causing price and quantity differences for constrained versus unconstrained blocks. I test these predictions by hand-matching more than 500,000 names in the phonebook to ethnicities, to calculate ethnic proportions at the apartment block level. I can then investigate differences for constrained and unconstrained blocks close to the quota limits and test for sorting around the limits. I find that price differences are between 3% and 5%. Quantity effects are economically significant, translating to longer time-on-market durations. Selection cannot fully explain these results. My results point to challenges in achieving desegregation using quantity restrictions. Abstract Desegregation is a key policy issue in many countries. I investigate a residential desegregation program in Singapore -the ethnic housing quotas. I show that choice restrictions imposed on apartment blocks above the quota limits (constrained) could have distortionary effects, causing price and quantity differences for constrained versus unconstrained blocks. I test these predictions by hand-matching more than 500,000 names in the phonebook to ethnicities, to calculate ethnic proportions at the apartment block level. I can then investigate differences for constrained and unconstrained blocks close to the quota limits and test for sorting around the limits. I find price differences are between 3% and 5%. Quantity effects are economically significant, translating to longer time-on-market durations by 1 to 1.4 months. Selection cannot fully explain these results. My results point to challenges in achieving desegregation using quantity restrictions. * I wish to thank my advisers Professors Esther Duflo, Amy Finkelstein, Panle Jia and Bill Wheaton for guidance and support. I am also deeply indebted to Professors Peter Diamond, Fernando Ferreira, Michael Greenstone, Joe Gyourko, two anonymous referees and the editor for their helpful comments. I have benefited from conversations with Professor

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“…First, many studies (e.g. Bayer, McMillan, and Rueben, 2002; Deng, Ross, 5 and Wachter, 2001;Gabriel and Rosenthal, 1989;and Waddell, 1992) examine racial differences in residential location choices using a multinomial choice framework. These studies consistently find that African-American households are much more likely to reside in locations with high concentrations of African-Americans and with unfavorable attributes, such as high poverty rates or low rates of homeownership, even after controlling for differences in endowments and family structure.…”

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confidence: 99%

“…First, many studies (e.g. Bayer, McMillan, and Rueben, 2002;Deng, Ross, 5 and Wachter, 2001;Gabriel and Rosenthal, 1989;and Waddell, 1992) for these proxy variables, the residual differences cannot be explained by systematic racial differences in preferences for the attributes considered. Any unexplained segregation may be the result of racial prejudice or constraints that are operating in the housing market, such as housing market discrimination or racial steering.…”

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confidence: 99%

Segregation and Racial Preferences: New Theoretical and Empirical Approaches

Ross¹

2003

Annales d'Économie et de Statistique

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This paper investigates the role of preferences for social interactions or outcomes in determining observed patterns of racial segregation. In the theoretical section, consumers maximize utility by allocating time between personal time and social interactions within their neighborhood, and the dual of this problem is used to investigate the bidding and sorting of households over racial composition. The models suggests that African-American households may outbid white households to reside in white neighborhoods, and unlike previous models of segregation this model is consistent with either racial segregation or integration. In the empirical analysis, proxy variables are developed for unobservable attributes that enter household preferences based on measures of household outcomes and satisfaction, and then specifies an econometric model of residential location choice using those attributes. The paper finds evidence that racial differences in preferences for education can explain a substantial portion, but not all, of the racial segregation observed in 1985 Philadelphia using data from the American Housing Survey. Journal of Economic Literature Classification: D1, D4, J7, R21 Segregation and Racial Preferences: New Theoretical and Empirical ApproachesRacial segregation in housing has been a feature of major American Metropolitan areas ever since the first major rural to urban migration in the late 1800's. African-Americans are more segregated than other minority groups, and only a small fraction of this segregation can be explained by socio-economic factors. While segregation has declined over the last few decades, the levels are still quite high in many urban areas (Massey and Denton, 1993). Moreover, these declines have been accompanied by a narrowing of the black-white wage gap (Daly and Couch, 2000) and as a result socioeconomic factors still cannot explain very much of the remaining level of segregation (DeRango, 1999). Naturally, researchers have searched for alternative explanations for the high level of segregation in American metropolitan areas. Much of this debate has focused on housing market discrimination and racial differences in preferences as possible explanations. This paper proposes and implements new theoretical and empirical approaches for examining the underlying causes of racial segregation in housing. Specifically, the theoretical and empirical models in this paper assume that households do not have preferences for neighborhood racial composition, nor for other easily observable location attributes like percent poverty or average education, but rather assume that apparent preferences for observed location attributes are derived demands that arise from a household's underlying preference for social interaction or for positive outcomes that arise from those social interactions.1 Prejudice, cultural affinity, and other factors related to race and ethnicity may influence outcomes, but they do so by On the theoretical side, traditional analyses have simply assumed that households have a...

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Household Location and Race: Estimates of a Multinomial Logit Model

Cited by 96 publications

References 12 publications

Residential Location Choice: The Role of a Taste for Similarity

Residential Location Choice: The Role of a Taste for Similarity

Estimating the distortionary effects of ethnic quotas in Singapore using housing transactions

Segregation and Racial Preferences: New Theoretical and Empirical Approaches

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