John M. Yinger

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J. Milton Yinger


Why Housing Agents Discriminate:
The Measurement, Causes, and Consequences
of Housing Discrimination

an e-book
by John Yinger

with contributions by:
 Seok Joon Choi
Jan Ondrich
Stephen Ross
Alex Stricker
Bo Zhao

Version 1.0:  March 2005


Return to e-books mainpage

 
Chapter 1.1:  Introduction
March 2005


            This e-book is a compendium of articles I have published on discrimination in housing.  It includes all of my publications on this topic that are available on the internet.  Some of these publications require a subscription to www.jstor.org or www.sciencedirect.com, which are now provided by virtually all universities.[1]  This e-book also includes a working paper and a policy brief.  My hope is that organizing these articles and papers and presenting them in this form will help to make my research more accessible to scholars interested in this topic.

             Many of the chapters in this e-book are co-authored, and I am grateful to my co-authors for their vital contributions to these projects. 

This e-book is a complement to my 1995 book on discrimination in housing (Yinger, 1995).  That book provides a broad overview of the literature, whereas the chapters of this e-book provide an in-depth look at specific questions about discrimination in housing. 

Both books rely heavily on data collected using fair housing audits, which are a matched-pair technique designed to determine how often and under what circumstances housing agents treat customers differently because of their race or ethnicity.  This technique is described in all the articles in Parts 1 through 3 of this e-book, which proves that repetition is a disadvantage of the e-book form, and in even more detail in Yinger (1995, Chapter 2). 

The main sources of these audit data are two national studies sponsored by the U.S. Department of Housing and Urban Development, namely, the 1989 and 2000 Housing Discrimination Studies.  For detailed discussions of these two studies, see Yinger (1995, Chapter 2) and Turner et al. (2002), respectively.   

            This e-book has six parts. 

            The first part, “Introduction and Overview,” includes not only this chapter, but also several publications that provide a broad look at the level and causes of discrimination in both the sales and rental markets.  Chapter 1.2, “Measuring Racial Discrimination with Fair Housing Audits: Caught in the Act,” develops an econometric framework for studying discrimination with fair housing audits and presents results for discrimination in the number of housing units shown based on audits conducted in Boston in 1981.   This part concludes with Chapter 1.3, “Evidence on Discrimination in Consumer Markets,” which provides a recent survey of the literature on discrimination in the housing and automobile markets. 

            Part 2, “Measuring Discrimination,” includes articles that discuss basic questions about defining and measuring housing discrimination.  The one chapter in this part is “How Common is Housing Discrimination?  Improving on Traditional Measures,” which is co-authored with Jan Ondrich and Stephen Ross.  This chapter explores the question of how to measure the incidence of discrimination using fair housing audit data.  This topic is introduced in Part 1, but covered in more depth here.  Other publications of mine that discuss this issue include Yinger (1993, 1995).   

            Part 3, “The Causes of Discrimination by Rental Agents,” focuses on the rental market using data from the 1989 and 2000 Housing Discrimination Studies.  Chapter 3.1 (co-authored with Jan Ondrich and Alex Stricker) is based on the 1989 HDS and Chapter 3.2 (co-authored with Jan Ondrich and Seok Joon Choi) is based on the 2000 HDS.  Both of these chapters focus on discrimination in discrete actions by landlords, such as the decision to show an advertised unit to a customer, and both chapters make use of the fixed-effects logit technique.  The causes of discrimination in other types of rental agent actions in 1989 are examined by Yinger (1991, 1995). 

            The sales market is examined in Part 4, “The Causes of Discrimination by Real Estate Brokers.” This part contains three  chapters.  The first and second chapters, which use data from the 1989 HDS, are based on a new approach to studying the causes of discrimination. In particular, these chapters, both of which are co-authored with Jan Ondrich and Stephen Ross, change the unit of observation from an audit to a housing unit. Instead of investigating the circumstances under which a minority auditor is treated less favorably than his or her majority teammate, these chapters investigate the circumstances under which a particular housing unit is shown to both auditors, to the majority auditor only, or to the minority auditor. Chapter 4.2, “Geography of Housing Discrimination” uses this technique to study to spatial dimension of discrimination in five urban areas. Chapter 4.3, “Now You See It, Now You Don't: Why Do Real Estate Agents Withhold Houses from Black Customers?,” applies this technique to the full HDS 1989 sample and asks whether discrimination depends on the match between a housing unit and the unit initially requested by the customer.

            The third chapter, co-authored with Bo Zhao and Jan Ondrich, examines the causes of discrimination in discrete actions by real estate brokers using the 2000 HDS. This chapters relies on the same technique used for the chapters in Part 2, namely, a fixed-effects logit.  A comparable analysis based on the 1989 HDS is provided by Ondrich, Stricker, and Yinger (1998). 

The second and third chapters in Part 4, which use data from the 1989 HDS, are based on a different approach to studying the causes of discrimination.  In particular, these chapters, both of which are co-authored with Jan Ondrich and Stephen Ross, change the unit of observation from an audit to a housing unit.  Instead of investigating the circumstances under which a minority auditor is treated less favorably than his or her majority teammate, these chapters investigate the circumstances under which a particular housing unit is shown to both auditors, to the majority auditor only, or to the minority auditor.  Chapter 4.2, “Geography of Housing Discrimination” uses this technique to study to spatial dimension of discrimination in five urban areas.  Chapter 4.3,  “Now You See It, Now You Don't:  Why Do Real Estate Agents Withhold Houses from Black Customers?,” applies this technique to the full HDS 1989 sample and asks whether discrimination depends on the match between a housing unit and the unit initially requested by the customer. 

The causes of discrimination in other types of behavior by real estate brokers in the 1989 HDS are examined by Page (1995), Turner and Mickelsons (1992), and Yinger (1991, 1995).  In addition, Zhao (Forthcoming) uses the 2000 HDS to examine the causes of discrimination in the number of houses a broker shows to a customer. 

            Part 5 of this e-book addresses “The Consequences of Discrimination.”  It includes one chapter, namely, “Cash in Your Face: The Cost of Racial and Ethnic Discrimination in Housing.”  This chapter provides a way to measure the monetary cost of housing discrimination by calculating the loss in consumer surplus it imposes on the households that encounter it.  Other publications of mine that address the consequences of discrimination include Courant and Yinger (1977) and Yinger (1976, 1978, 1995, 2001). 

            The final part of this book addresses “Fair Housing Policy.”  Chapter 6.1 is titled “Opening Doors:  How to Cut Discrimination by Supporting Neighborhood Integration.” This chapter explains how government programs to promote grass-root integration efforts might help to combat discrimination in housing.[2]  The second chapter, “Housing Discrimination is Still Worth Worrying About,” examines the available evidence concerning housing discrimination and argues, based on this evidence, that strong fair-housing enforcement actions by the federal government are still needed.  Finally, Chapter 6.3, “Sustaining the Fair Housing Act,” examines the history and legacy of the Fair Housing Act of 1968 and argues that it still has a vital role to play. 

            Housing discrimination is still a disturbingly common type of behavior with important implications for our society.  I hope this e-book proves helpful to people interested in this topic.  In addition, interested scholars can also obtain fair housing audit data elsewhere on my website (http://faculty.maxwell.syr.edu/jyinger/Computer_Programs/Downloadable_Data_Sets/DataSets.htm).

 

References 

Courant, Paul N., and John Yinger.  1977.  “On Models of Racial Prejudice and Urban Residential Structure.”  Journal of Urban Economics, July, pp. 272‑291. 

Ondrich, Jan, Alex Stricker, and John Yinger, "Do Real Estate Brokers Choose to Discriminate? Evidence from the 1989 Housing Discrimination Study." Southern Economic Journal, April 1998, pp. 880-901.

Page, Marianne. 1995. “Racial and Ethnic Discrimination in Urban Housing Markets.” Journal of Urban Economics, September, pp. 183-206. 

Turner, Margery Austin, and Maris Mickelsons. 1992.  “Patterns of Racial Steering in Four Metropolitan Areas.”  Journal of Housing Economics, September, pp. 199-234. 

Turner, Margery A., Stephen L. Ross, George Galster, and John Yinger.  2002.  Discrimination in Metropolitan Housing Markets:  National Results from Phase 1 HDS 2000.  Washington, D.C.:  The Urban Institute, November. 

Yinger, John.  2001.  “Housing Discrimination and Residential Segregation as Causes of Poverty.”  In Understanding Poverty in America, edited by S.H. Danziger and R.H. Haveman (Cambridge, MA:  Harvard University Press), pp. 359-391. 

Yinger, John.  1995.  Closed Doors, Opportunities Lost:  The Continuing Costs of Housing Discrimination.  New York:  Russell Sage Foundation. 

Yinger, John.  1993.  “Access Denied, Access Constrained: Results and Implications of the 1989 Housing Discrimination Study.”  In Clear and Convincing Evidence: Measurement of Discrimination in America, edited by M. Fix and R. Struyk (Washington, D.C.:  The Urban Institute Press), pp. 69-112. 

Yinger, John.  1991.  "Acts of Discrimination: Evidence from the 1989 Housing Discrimination Study." Journal of Housing Economics, December 1991, pp. 318-346. 

Yinger, John.  1978.  “The Black‑White Price Differential in Housing: Some Further Evidence.”  Land Economics, May, pp. 187‑206. 

Yinger, John.  1976.  “Racial Prejudice and Racial Residential Segregation in an Urban Model.”  Journal of Urban Economics, October, pp. 383‑396. 

Zhao, Bo.  Forthcoming.  “Does the Number of Houses a Broker Shows Depend on a Homeseeker’s Race?, Journal of Urban Economics


 

[1] Footnotes on the chapter titles in the table of contents indicate which service, if any, is needed for each chapter.

[2] A teaching case based on this proposal is available on my website at http://faculty.maxwell.syr.edu/jyinger/Teaching_Material/casejy.html.

 


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