Homeownership of Immigrants in France: Selection Effects Related to International Migration Flows

41 Pages Posted: 29 Nov 2015

See all articles by Laurent Gobillon

Laurent Gobillon

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST); National Institute of Demographic Studies (INED)

Matthieu Solignac

University of Pennsylvania

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Abstract

We investigate the difference in homeownership rates between natives and first-generation immigrants in France, and how this difference evolves over the 1975-1999 period, by using a large longitudinal dataset. We find that the homeownership gap is large and has increased. Entries into the territory have a large negative effect on the evolution of homeownership rates for immigrants. Although entrants have on average better education than people staying in the territory for the entire period (i.e. stayers), they are younger and thus at an earlier stage in the wealth accumulation process.They are also located in large cities, where the homeownership rate is lower, and the returns to their characteristics are lower than those for stayers. Leavers have a positive effect on the evolution of homeownership rates for immigrants because they have a low access to homeownership and they exit the country. But this effect is only one-third that of entrants. For stayers, we show that returns to characteristics change in favor of immigrants, which is consistent with assimilation theories. However, among stayers who access homeownership, immigrants end up in owned dwellings that are of lesser quality than natives.

Keywords: homeownership, immigrants, longitudinal data

JEL Classification: J15, R21

Suggested Citation

Gobillon, Laurent and Solignac, Matthieu, Homeownership of Immigrants in France: Selection Effects Related to International Migration Flows. IZA Discussion Paper No. 9517. Available at SSRN: https://ssrn.com/abstract=2696355

Laurent Gobillon (Contact Author)

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST) ( email )

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National Institute of Demographic Studies (INED) ( email )

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HOME PAGE: http://laurent.gobillon.free.fr/

Matthieu Solignac

University of Pennsylvania ( email )

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