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Regional Economics Commons

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Urban issues

2001

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Full-Text Articles in Regional Economics

Black-White Segregation, Discrimination, And Home Ownership, Kelly Derango Aug 2001

Black-White Segregation, Discrimination, And Home Ownership, Kelly Derango

Upjohn Institute Working Papers

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 …