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Sorting or Steering: The Effects of Housing Discrimination on Neighborhood Choice

Author

Listed:
  • Peter Christensen
  • Christopher Timmins

Abstract

Growing evidence indicates that neighborhoods affect human capital accumulation, raising concern that the exclusionary effects of housing discrimination could contribute to persistent inequality in the United States. Using data from HUD’s most recent Housing Discrimination Study and microlevel data on neighborhood attributes in 28 US cities, we find that minorities are steered toward neighborhoods with less economic opportunity and greater exposures to crime and pollution. Holding preferences and income constant, discriminatory steering alone can explain a disproportionate number of minority households found in high-poverty neighborhoods in the United States and the higher exposure of African American mothers to toxic pollutants.

Suggested Citation

  • Peter Christensen & Christopher Timmins, 2022. "Sorting or Steering: The Effects of Housing Discrimination on Neighborhood Choice," Journal of Political Economy, University of Chicago Press, vol. 130(8), pages 2110-2163.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/720140
    DOI: 10.1086/720140
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    Cited by:

    1. Hannah Kotula & David C. Maré, 2024. "Distinctive neighbourhood housing patters in Aotearoa New Zealand," Working Papers 24_53, Motu Economic and Public Policy Research.
    2. Hausman, Catherine & Stolper, Samuel, 2021. "Inequality, information failures, and air pollution," Journal of Environmental Economics and Management, Elsevier, vol. 110(C).
    3. Raffaele Grotti & Helen Russell & Bertrand Maître & Davide Gritti, 2024. "The Experience of Housing Discrimination and Housing Deprivation Across Social Groups in Ireland," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 175(1), pages 195-215, October.
    4. Patrick Koval, 2018. "Toxic Effects of Lead Disposal in Water: An Analysis of TRI Facility Releases," Working Papers 1809, College of the Holy Cross, Department of Economics.
    5. Peter Christensen & Ignacio Sarmiento-Barbieri & Christopher Timmins, 2022. "Housing Discrimination and the Toxics Exposure Gap in the United States: Evidence from the Rental Market," The Review of Economics and Statistics, MIT Press, vol. 104(4), pages 807-818, October.
    6. H. Spencer Banzhaf & William Mathews & Randall Walsh, 2024. "Hell with the Lid Off: Racial Segregation and Environmental Equity in America’s Most Polluted City," NBER Working Papers 32950, National Bureau of Economic Research, Inc.
    7. 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).
    8. Pamela Campa & Lucija Muehlenbachs, 2024. "Addressing Environmental Justice through In-Kind Court Settlements," American Economic Journal: Economic Policy, American Economic Association, vol. 16(1), pages 415-446, February.
    9. Aguilar-Gómez , Sandra & Cárdenas, Juan Camilo & Salas Díaz, Ricardo, 2024. "Environmental Justice Beyond Race: Skin Tone and Exposure to Air Pollution," Documentos CEDE 21042, Universidad de los Andes, Facultad de Economía, CEDE.
    10. Andrew Hanson & Zackary Hawley, 2023. "Restricted access: Real estate agent response to client race, ethnicity, gender, and side of market," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(4), pages 855-890, July.
    11. Joakim A. Weill, 2023. "Flood Risk Mapping and the Distributional Impacts of Climate Information," Finance and Economics Discussion Series 2023-066, Board of Governors of the Federal Reserve System (U.S.).
    12. Joakim Weill, 2023. "Flood Risk Mapping and the Distributional Impacts of Climate Information," Working Papers 2023.10, FAERE - French Association of Environmental and Resource Economists.
    13. Roshanak Mehdipanah & Jessica Ramirez & Shanti Abedin & Sherrill F. Brown, 2018. "Housing Discrimination and Health: Understanding Potential Linking Pathways Using a Mixed-Methods Approach," Social Sciences, MDPI, vol. 7(10), pages 1-10, October.
    14. Raj Chetty & John N. Friedman & Nathaniel Hendren & Maggie R. Jones & Sonya R. Porter, 2018. "The Opportunity Atlas: Mapping the Childhood Roots of Social Mobility," NBER Working Papers 25147, National Bureau of Economic Research, Inc.
    15. Borsky, Stefan & Fesselmeyer, Eric & Vogelsang, Lennart, 2024. "Urban heat and within-city residential sorting," Journal of Environmental Economics and Management, Elsevier, vol. 127(C).
    16. Bakkensen, Laura A. & Ma, Lala & Muehlenbachs, Lucija & Benitez, Lina, 2024. "Cumulative impacts in environmental justice: Insights from economics and policy," Regional Science and Urban Economics, Elsevier, vol. 107(C).
    17. Kuminoff, Nicolai V. & Mathes, Sophie M., 2024. "Residential sorting, local environments, and human capital," Regional Science and Urban Economics, Elsevier, vol. 107(C).
    18. Gailey, Samantha, 2022. "Moving to greener pastures: Health selection into neighborhood green space among a highly mobile and diverse population in California," Social Science & Medicine, Elsevier, vol. 315(C).
    19. Gazze, Ludovica, 2021. "The price and allocation effects of targeted mandates: Evidence from lead hazards," Journal of Urban Economics, Elsevier, vol. 123(C).
    20. Bakkensen, Laura A. & Ma, Lala, 2020. "Sorting over flood risk and implications for policy reform," Journal of Environmental Economics and Management, Elsevier, vol. 104(C).
    21. Albouy, David & Christensen, Peter & Sarmiento-Barbieri, Ignacio, 2020. "Unlocking amenities: Estimating public good complementarity," Journal of Public Economics, Elsevier, vol. 182(C).

    More about this item

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • 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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