Working Paper: NBER ID: w29516
Authors: Peter Christensen; Ignacio Sarmiento-Barbieri; Christopher Timmins
Abstract: We report evidence on discriminatory behavior from the largest correspondence study conducted to date in the rental housing market. Using more than 25,000 interactions with rental property managers across the 50 largest U.S. cities, the study reveals that African American and Hispanic/LatinX renters continue to face discriminatory constraints in the majority of U.S. cities although there are important regional differences. Stronger discriminatory constraints on renters of color (particularly African Americans) are also associated with higher levels of residential segregation and larger gaps in intergenerational income mobility. Using matched evidence on the actual rental outcomes at the properties in our experiment, we show that correspondence study measurements of discrimination do indeed predict actual outcomes.
Keywords: Racial Discrimination; Housing Outcomes; Rental Market
JEL Codes: J15; R31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Racial identity (J15) | Response rate from property managers (R31) |
| Response rate from property managers (R31) | Rental outcomes (R21) |
| Racial identity (J15) | Rental outcomes (R21) |
| Neighborhood diversity (R23) | Impact of discrimination (J71) |
| Region (R11) | Magnitude of discrimination (J71) |