Why Do Real Estate Brokers Continue to Discriminate? Evidence from the 2000 Housing Discrimination Study

Syracuse University Center for Policy Research Working Paper No. 67

46 Pages Posted: 18 Apr 2011

See all articles by Bo Zhao

Bo Zhao

Federal Reserve Bank of Boston

Jan Ondrich

Syracuse University - Center for Policy Research

John Yinger

Syracuse University, Maxwell School of Citizenship and Public Affairs

Multiple version iconThere are 2 versions of this paper

Date Written: April 1, 2005

Abstract

This paper studies racial and ethnic discrimination in discrete choices by real estate brokers using national audit data from the 2000 Housing Discrimination Study. It uses a fixed effects logit model to estimate the probability that discrimination occurs and to study the causes of discrimination. The data set makes it possible to control for auditors’ actual demographic and socioeconomic characteristics, along with the characteristics assigned for the purposes of the audit. The study finds that discrimination continues to be strong but also documents a downward trend in both the scope and incidence of discrimination since 1989. The estimations also identify both brokers’ prejudice and white customers’ prejudice as causes of discrimination.

Keywords: housing discrimination, audit, fixed-effects logit

JEL Classification: J71, R31

Suggested Citation

Zhao, Bo and Ondrich, Jan and Yinger, John, Why Do Real Estate Brokers Continue to Discriminate? Evidence from the 2000 Housing Discrimination Study (April 1, 2005). Syracuse University Center for Policy Research Working Paper No. 67, Available at SSRN: https://ssrn.com/abstract=1813995 or http://dx.doi.org/10.2139/ssrn.1813995

Bo Zhao

Federal Reserve Bank of Boston ( email )

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Jan Ondrich (Contact Author)

Syracuse University - Center for Policy Research ( email )

Maxwell School of Citizenship 426 Eggers Hall
Syracuse, NY 13244
United States

John Yinger

Syracuse University, Maxwell School of Citizenship and Public Affairs ( email )

Center for Policy Research
426 Eggers Hall
Syracuse, NY 13244-1020
United States
315-443-9062 (Phone)

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