Ethnic Disparities in the Transition to Home Ownership

21 Pages Posted: 22 Mar 2014

See all articles by Aslan Zorlu

Aslan Zorlu

University of Amsterdam

Clara H. Mulder

University of Amsterdam

Ruben van Gaalen

Statistics Netherlands

Abstract

This paper examines ethnic disparities in the transition to home ownership using longitudinal register data from the Netherlands. The study performs a discrete duration model to account for individual and parental background and neighbourhood conditions. Subsequently, the size of explained variance in the home ownership gap between Dutch and ethnic minority groups is estimated using the Oaxaca-Fairlie non-linear decomposition method. The analysis indicates that the home ownership gap is the highest for Moroccans (0.07) of which only 0.042 is explained by the observed characteristics. For Turkish residents, 0.043 of the total 0.046 gap is explained by their background characteristics. The estimated transition rate to home ownership for Surinamese migrants would have been slightly higher than for Dutch residents if they had the same characteristics as Dutch residents. Western migrants have the smallest gap (0.024), of which 0.021 is explained by their observed characteristics.

Keywords: immigrants, housing tenure, discrete time duration, non-linear decomposition

JEL Classification: R21

Suggested Citation

Zorlu, Aslan and Mulder, Clara H. and van Gaalen, Ruben, Ethnic Disparities in the Transition to Home Ownership. IZA Discussion Paper No. 8039. Available at SSRN: https://ssrn.com/abstract=2412860

Aslan Zorlu (Contact Author)

University of Amsterdam ( email )

Spui 21
Amsterdam, 1018 WB
Netherlands

Clara H. Mulder

University of Amsterdam ( email )

Spui 21
Amsterdam, 1018 WB
Netherlands

HOME PAGE: http://www.fmg.uva.nl/amidst/object.cfm?objectID=870EBF02-57BD-4CD4-85A5C70F3776E2C8

Ruben Van Gaalen

Statistics Netherlands

Henri Faasdreef 312
The Hague, 2492 JP
Netherlands

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