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
Date Written: April 1, 2005
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: Suggested Citation