Working Paper: CEPR ID: DP6490
Authors: Amelie Constant; Rowan Roberts; Klaus F. Zimmermann
Abstract: Immigrants are much less likely to own their homes than natives, even after controlling for a broad range of life-cycle and socio-economic characteristics and housing market conditions. This paper extends the analysis of immigrant housing tenure choice by explicitly accounting for ethnic identity as a potential influence on the homeownership decision, using a two-dimensional model of ethnic identity that incorporates attachments to both origin and host cultures. The evidence suggests that immigrants with a stronger commitment to the host country are more likely to achieve homeownership for a given set of socioeconomic and demographic characteristics, regardless of their level of attachment to their home country.
Keywords: Ethnic Identity; Ethnicity; Homeownership; Immigrant Integration; Immigration
JEL Codes: F22; J15; R21; Z10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Assimilation and integration (F15) | Homeownership (R21) |
| Higher levels of assimilation (I39) | Higher probability of homeownership (R21) |
| Higher levels of integration (F15) | Higher probability of homeownership (R21) |
| Homeownership (R21) | Commitment to host community (F53) |
| Lack of attachment to host country (F22) | Poor homeownership outcomes (R21) |
| Assimilation or integration (F15) | Access to housing market (R21) |