Tenure choice with location selection: the case of Hispanic neighborhoods in Chicago

A notable feature of immigration into the U.S. is the high degree of spatial concentration of different immigrant groups. We ask the question whether residing in areas with a large proportion of a co-ethnic group influence the decision to own a home for Hispanics in the Chicago Metropolitan area. The results show that Hispanics choose to live in Hispanic enclaves based on relatively homogeneous characteristics such as recent migration, less English language fluency, and lower income. More years in the U.S., higher education attainment and English language fluency remain strong predictors of homeownership. Individuals are less likely to be homeowners in communities with a larger co-ethnic concentration, foreign-born residents, or lower-incomeImmigrants ; Income ; Mortgage loans

The relationship between Hispanic residential location and homeownership

This article asks two basic questions. First, is homeownership more or less likely for Hispanics who choose to reside in an ethnic location; and second, is the location decision jointly or endogenously made with the homeownership decision? The findings suggest that, indeed, the location and homeownership decisions are jointly made. Furthermore, the decision to reside in a Hispanic enclave has a positive, significant influence on the likelihood of owning a home.Home ownership ; Hispanic Americans - Population

The importance of check-cashing businesses to the unbanked: racial/ethnic differences

The roughly 9.5 percent of all U.S. families that are without some type of transaction account (unbanked) are disproportionately represented by minorities. The unbanked often must rely on alternative ways to carry out basic financial transactions such as cashing payroll checks and paying bills. This study analyzes unique survey data and finds that a consumer's decision to patronize check-cashing businesses is jointly made with the decision to be unbanked. For the unbanked, these businesses are an important source for financial services. Attributes that contribute to these decisions, however, vary for each racial/ethnic group. Latent preference effects are also observed to influence this joint decision for Blacks and Hispanics. These findings may explain in part why the provisions of the Debt Collection Improvement Act (DCIA) of 1996 have not been more successful in bringing unbanked federal benefits recipients into the financial mainstream. ; Consumer participation in mainstream financial markets can improve their ability to build assets and create wealth, protect them from theft and discriminatory, predatory or unsavory lending practices, and may promote economic stability and vitality in the communities where they reside. By more fully understanding a consumer's financial decisions, policies can be better directed to improve the effectiveness of legislation such as the DCIA of 1996 in encouraging mainstream financial market participation.Nonbank financial institutions ; Debt management ; Checks