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The Effects of the 1930s HOLC "Redlining" Maps

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  • Daniel Aaronson
  • Daniel Hartley
  • Bhashkar Mazumder

Abstract

This study uses a boundary design and propensity score methods to study the effects of the 1930s-era Home Owners Loan Corporation (HOLC) "redlining" maps on the long-run trajectories of urban neighborhoods. The maps led to reduced home ownership rates, house values, and rents and increased racial segregation in later decades. A comparison on either side of a city-level population cutoff that determined whether maps were drawn finds broadly similar conclusions. These results suggest the HOLC maps had meaningful and lasting effects on the development of urban neighborhoods through reduced credit access and subsequent disinvestment.

Suggested Citation

  • Daniel Aaronson & Daniel Hartley & Bhashkar Mazumder, 2021. "The Effects of the 1930s HOLC "Redlining" Maps," American Economic Journal: Economic Policy, American Economic Association, vol. 13(4), pages 355-392, November.
    • Handle: RePEc:aea:aejpol:v:13:y:2021:i:4:p:355-92
    DOI: 10.1257/pol.20190414
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Residential redlining of U.S. neighborhoods
      by ? in FRED blog on 2021-09-02 13:00:00
    2. Residential segregation and redlining
      by ? in FRED blog on 2021-09-09 13:00:00

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    5. Albers, Thilo N.H. & Kappner, Kalle, 2023. "Perks and pitfalls of city directories as a micro-geographic data source," Explorations in Economic History, Elsevier, vol. 87(C).
    6. Vu, Hoa & Green, Tiffany L. & Swan, Laura E.T., 2024. "Born on the wrong side of the tracks: Exploring the causal effects of segregation on infant health," Journal of Health Economics, Elsevier, vol. 95(C).
    7. Scott Markley, 2024. "Federal ‘redlining’ maps: A critical reappraisal," Urban Studies, Urban Studies Journal Limited, vol. 61(2), pages 195-213, February.
    8. Swope, Carolyn B. & Hernández, Diana, 2019. "Housing as a determinant of health equity: A conceptual model," Social Science & Medicine, Elsevier, vol. 243(C).
    9. Evelyn Ravuri, 2023. "Neighbourhood change in Genesee and Kent Counties, Michigan, 1970–2019," Papers in Regional Science, Wiley Blackwell, vol. 102(1), pages 107-127, February.
    10. Quincy, Sarah, 2022. "Income shocks and housing spillovers: Evidence from the World War I Veterans’ Bonus," Journal of Urban Economics, Elsevier, vol. 132(C).
    11. T. William Lester & Matthew D. Wilson, 2023. "The Racial and Spatial Impacts of the Paycheck Protection Program," Economic Development Quarterly, , vol. 37(3), pages 243-258, August.
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    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-
    • N42 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: 1913-
    • N92 - Economic History - - Regional and Urban History - - - U.S.; Canada: 1913-
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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