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The Neighbor is King: Customer Discrimination in the Housing Market

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Titre

The Neighbor is King: Customer Discrimination in the Housing Market

Sujet

[SHS:ECO] Humanities and Social Sciences/Economy and finances
Customer Discrimination
Matching frictions
Neighborhood Externalities
Housing Market

Description

This paper provides a method to single out customer-based discrimination in the housing market. We build a matching model with ethnic externalities where landlords differ in the number of housing units they own within the same building. Multiple-dwelling landlords discriminate more often than single-dwelling landlords only if some tenants are prejudiced against the minority group. By testing the null hypothesis whereby minority tenants are equally likely to have a multiple-dwelling landlord, we can test whether there is customer discrimination or not. We run the test on French data and show evidence of customer discrimination in the rental market.

Créateur

Combes, Pierre-Philippe
Decreuse, Bruno
Schmutz, Benoît
Trannoy, Alain

Date

2012-09

Langue

ENG

Type

preprint

Identifiant

http://halshs.archives-ouvertes.fr/halshs-00793403
http://halshs.archives-ouvertes.fr/docs/00/79/34/03/PDF/WP_2012_-_Nr_24.pdf