IDEAS home Printed from https://ideas.repec.org/a/spr/demogr/v57y2020i5d10.1007_s13524-020-00913-4.html
   My bibliography  Save this article

Tapped Out? Racial Disparities in Extrahousehold Kin Resources and the Loss of Homeownership

Author

Listed:
  • Gregory Sharp

    (Dartmouth College)

  • Ellen Whitehead

    (Ball State University)

  • Matthew Hall

    (Cornell University)

Abstract

Research shows that extrahousehold kin economic resources contribute to the racial gap in transitions into homeownership, but the extent to which these resources matter for racial disparities in exits from homeownership is less understood. Using longitudinal data from the Panel Study of Income Dynamics, 1984–2017, we examine the role of extrahousehold kin wealth and poverty in shaping racial inequalities in the risk of exiting homeownership. Our nonlinear decomposition results indicate that racial differences in family network resources explain a nontrivial portion of the racial gap in homeownership exit, but there is little evidence that the effects of kin resources on exit are moderated by race. Among both Black and White owners, having wealthier noncoresident kin does not lessen the negative impacts of adverse economic or health shocks on the probability of losing homeownership. Our findings have implications for policies and programs designed to buttress the ability of minority households, especially those in financial distress, to sustain the wealth-building state of homeownership.

Suggested Citation

  • Gregory Sharp & Ellen Whitehead & Matthew Hall, 2020. "Tapped Out? Racial Disparities in Extrahousehold Kin Resources and the Loss of Homeownership," Demography, Springer;Population Association of America (PAA), vol. 57(5), pages 1903-1928, October.
    • Handle: RePEc:spr:demogr:v:57:y:2020:i:5:d:10.1007_s13524-020-00913-4
    DOI: 10.1007/s13524-020-00913-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13524-020-00913-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13524-020-00913-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jessica Houston Su & Fenaba R. Addo, 2018. "Born Without a Silver Spoon: Race, Wealth, and Unintended Childbearing," Journal of Family and Economic Issues, Springer, vol. 39(4), pages 600-615, December.
    2. Mayock, Tom & Malacrida, Rachel Spritzer, 2018. "Socioeconomic and racial disparities in the financial returns to homeownership," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 80-96.
    3. Patrick Bayer & Fernando Ferreira & Stephen L. Ross, 2016. "The Vulnerability of Minority Homeowners in the Housing Boom and Bust," American Economic Journal: Economic Policy, American Economic Association, vol. 8(1), pages 1-27, February.
    4. Chao Tian & Roberto Quercia & Sarah Riley, 2016. "Unemployment as an Adverse Trigger Event for Mortgage Default," The Journal of Real Estate Finance and Economics, Springer, vol. 52(1), pages 28-49, January.
    5. Signe-Mary McKernan & Caroline Ratcliffe & Margaret Simms & Sisi Zhang, 2014. "Do Racial Disparities in Private Transfers Help Explain the Racial Wealth Gap? New Evidence From Longitudinal Data," Demography, Springer;Population Association of America (PAA), vol. 51(3), pages 949-974, June.
    6. Edward N. Wolff, 2016. "Deconstructing Household Wealth Trends in the United States, 1983 - 2013," NBER Working Papers 22704, National Bureau of Economic Research, Inc.
    7. Amy Spring & Elizabeth Ackert & Kyle Crowder & Scott J. South, 2017. "Influence of Proximity to Kin on Residential Mobility and Destination Choice: Examining Local Movers in Metropolitan Areas," Demography, Springer;Population Association of America (PAA), vol. 54(4), pages 1277-1304, August.
    8. Sarah Hayford, 2013. "Marriage (Still) Matters: The Contribution of Demographic Change to Trends in Childlessness in the United States," Demography, Springer;Population Association of America (PAA), vol. 50(5), pages 1641-1661, October.
    9. Kerwin Kofi Charles & Erik Hurst, 2002. "The Transition To Home Ownership And The Black-White Wealth Gap," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 281-297, May.
    10. Jacob W. Faber & Ingrid Gould Ellen, 2016. "Race and the Housing Cycle: Differences in Home Equity Trends Among Long-Term Homeowners," Housing Policy Debate, Taylor & Francis Journals, vol. 26(3), pages 456-473, May.
    11. Tracy M. Turner & Marc T. Smith, 2009. "Exits From Homeownership: The Effects Of Race, Ethnicity, And Income," Journal of Regional Science, Wiley Blackwell, vol. 49(1), pages 1-32, February.
    12. Justin P. Steil & Len Albright & Jacob S. Rugh & Douglas S. Massey, 2018. "The social structure of mortgage discrimination," Housing Studies, Taylor & Francis Journals, vol. 33(5), pages 759-776, July.
    13. Painter, Gary & Lee, KwanOk, 2009. "Housing tenure transitions of older households: Life cycle, demographic, and familial factors," Regional Science and Urban Economics, Elsevier, vol. 39(6), pages 749-760, November.
    14. N. Chiteji & Darrick Hamilton, 2002. "Family connections and the black-white wealth gap among middle-class families," The Review of Black Political Economy, Springer;National Economic Association, vol. 30(1), pages 9-28, June.
    15. Hannah Thomas, 2013. "The Financial Crisis Hits Home: Foreclosures and Asset Exhaustion in Boston," Housing Policy Debate, Taylor & Francis Journals, vol. 23(4), pages 738-764, October.
    16. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    17. Di, Zhu Xiao & Belsky, Eric & Liu, Xiaodong, 2007. "Do homeowners achieve more household wealth in the long run?," Journal of Housing Economics, Elsevier, vol. 16(3-4), pages 274-290, November.
    18. Lisa Kaida, 2015. "Ethnic Variations in Immigrant Poverty Exit and Female Employment: The Missing Link," Demography, Springer;Population Association of America (PAA), vol. 52(2), pages 485-511, April.
    19. Laurie S. Goodman & Christopher Mayer, 2018. "Homeownership and the American Dream," Journal of Economic Perspectives, American Economic Association, vol. 32(1), pages 31-58, Winter.
    20. Berger, Lawrence M. & Collins, J. Michael & Smeeding, Timothy M., 2015. "Exiting or retaining owner-occupied housing in the United States 1999–2009: How do social programs matter?," Children and Youth Services Review, Elsevier, vol. 57(C), pages 112-126.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bram Hogendoorn & Matthijs Kalmijn, 2024. "Does Ethnicity Moderate the Union Dissolution Penalty for Women? A Register-based Analysis of Changes in Income Components," European Journal of Population, Springer;European Association for Population Studies, vol. 40(1), pages 1-24, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chunhui Ren, 2020. "A Framework for Explaining Black-White Inequality in Homeownership Sustainability," Demography, Springer;Population Association of America (PAA), vol. 57(4), pages 1297-1321, August.
    2. Turner, Tracy M. & Luea, Heather, 2009. "Homeownership, wealth accumulation and income status," Journal of Housing Economics, Elsevier, vol. 18(2), pages 104-114, June.
    3. Durba Chakrabarty & Michael J. Osei & John V. Winters & Danyang Zhao, 2019. "Which immigrant and minority homeownership rates are gaining ground in the US?," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 43(2), pages 273-297, April.
    4. Chakrabarty, Durba & Osei, Michael J. & Winters, John V. & Zhao, Danyang, 2017. "Are Immigrant and Minority Homeownership Rates Gaining Ground in the US?," IZA Discussion Papers 10852, Institute of Labor Economics (IZA).
    5. Shaun A. Bond & Michael D. Eriksen, 2021. "The role of parents on the home ownership experience of their children: Evidence from the health and retirement study," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(2), pages 433-458, June.
    6. Wang, Jia & Winters, John V. & Yuan, Weici, 2022. "Can legal status help unauthorized immigrants achieve the American dream? Evidence from the Deferred Action for Childhood Arrivals program," Regional Science and Urban Economics, Elsevier, vol. 95(C).
    7. Croux, Christophe & Jagtiani, Julapa & Korivi, Tarunsai & Vulanovic, Milos, 2020. "Important factors determining Fintech loan default: Evidence from a lendingclub consumer platform," Journal of Economic Behavior & Organization, Elsevier, vol. 173(C), pages 270-296.
    8. Jeanne Lafortune & Corinne Low, 2023. "Collateralized Marriage," American Economic Journal: Applied Economics, American Economic Association, vol. 15(4), pages 252-291, October.
    9. Patrick Bayer & Fernando Ferreira & Stephen L. Ross, 2018. "What Drives Racial and Ethnic Differences in High-Cost Mortgages? The Role of High-Risk Lenders," The Review of Financial Studies, Society for Financial Studies, vol. 31(1), pages 175-205.
    10. Laurent Gobillon & Matthieu Solignac, 2020. "Homeownership of immigrants in France: selection effects related to international migration flows [A nation of immigrants: assimilation and economic outcomes in the age of mass migration]," Journal of Economic Geography, Oxford University Press, vol. 20(2), pages 355-396.
    11. Chu-Chia Lin & Po-Sheng Lai, 2018. "An Empirical Study on the Impact of Tenure Choice on Saving for Chinese Households," International Real Estate Review, Global Social Science Institute, vol. 21(2), pages 275-294.
    12. Anthony Lepinteur & Giorgia Menta & Sofie R. Waltl, 2023. "Equal Price for Equal Place? Demand-Driven Racial Discrimination in the Housing Market," LISER Working Paper Series 2023-09, Luxembourg Institute of Socio-Economic Research (LISER).
    13. Li, Phillip & Mayock, Tom, 2019. "Mortgage characteristics and the racial incidence of default," Journal of Housing Economics, Elsevier, vol. 46(C).
    14. James Conklin & Kristopher Gerardi & Lauren Lambie-Hanson, 2022. "Can Everyone Tap Into the Housing Piggy Bank? Racial Disparities in Access to Home Equity," FRB Atlanta Working Paper 2022-17, Federal Reserve Bank of Atlanta.
    15. Sarah Riley, 2012. "Land use regulations and the returns to low-income homeownership," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(3), pages 745-766, December.
    16. Begley, Jaclene & Chan, Sewin, 2022. "Next to kin: How children influence the residential mobility decisions of older adults," The Journal of the Economics of Ageing, Elsevier, vol. 23(C).
    17. Scott N. Markley & Taylor J. Hafley & Coleman A. Allums & Steven R. Holloway & Hee Cheol Chung, 2020. "The Limits of Homeownership: Racial Capitalism, Black Wealth, and the Appreciation Gap in Atlanta," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 44(2), pages 310-328, March.
    18. Kishor, N. Kundan & Konkel, Rebecca & Yoon, Jangsu & Zhao, Tian, 2023. "Bridging the racial disparity in wealth creation in Milwaukee," MPRA Paper 117686, University Library of Munich, Germany.
    19. Bütler, Monika & Stadelmann, Sabrina, 2020. "Building on a pension: Second pillar wealth as a way to finance real estate?," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    20. Robert B. Williams, 2017. "Wealth Privilege and the Racial Wealth Gap: A Case Study in Economic Stratification," The Review of Black Political Economy, Springer;National Economic Association, vol. 44(3), pages 303-325, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:demogr:v:57:y:2020:i:5:d:10.1007_s13524-020-00913-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.