Skip to main content
Article thumbnail
Location of Repository

Explaining the black–white homeownership gap: the role of own wealth, parental externalities and locational preferences

By Christian A. L. Hilber and Yingchun Liu


African Americans in the United States are considerably less likely to own their homes compared to Whites. Differences in household income and other socio-economic and demographic characteristics can only partially explain this gap and previous studies suggest that the ‘unexplained’ gap has increased over time. In this paper we use the Panel Study of Income Dynamics (PSID) intergenerational data, which provides information on household wealth, parental characteristics and location choice. We find that African–American households are 6.5 percent less likely to own if only traditional explanatory variables are controlled for. However, the black–white homeownership gap disappears if differences in wealth and in the preferred location type (i.e., a broad location classification based on the degree of urbanization of the place of residence) are accounted for

Topics: HN Social history and conditions. Social problems. Social reform, HB Economic Theory
Publisher: Elsevier
Year: 2008
DOI identifier: 10.1016/j.jhe.2008.02.001
OAI identifier:
Provided by: LSE Research Online
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://www.journals.elsevier.c... (external link)
  • (external link)
  • Suggested articles

    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.