Homeownership segregation.

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Date: July 2022
Publisher: Elsevier B.V.
Document Type: Brief article
Length: 213 words

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Abstract :

Highlights * Homeownership considered an essential part of the "American Dream". * Children's upward mobility is predicted by homeownership segregation. * 1968 Fair Housing Act plausibly preserved homeownership segregation since the 1970s. * CZs with high homeownership segregation feature more land-use regulation even today. * Effects on children's mobility mediated by income, racial, and school segregation. Abstract Homeownership is considered an essential part of the "American Dream" and forms the foundation of upward mobility. We show that the upward mobility of children from low-income families is not predicted by homeownership rates, but by homeownership segregation. Higher residential segregation between homeowners and renters predicts lower upward mobility of children from low-income families, while not affecting high-income families. We hypothesize the 1968 Fair Housing Act preserved homeownership segregation in CZs since the 1970s, and feature more land-use regulation even today. Channels mediating the effect of homeownership on upward mobility include income segregation, racial segregation, school segregation, and commuting times. Author Affiliation: (a) CAFRAL, Research Department, Reserve Bank of India Main Building, Fort, Mumbai 400 001, India (b) Department of Economics and Haas School of Business, 501 Evans Hall, Berkeley CA 94720, United States * Corresponding author. Article History: Received 1 May 2022; Accepted 3 May 2022 Byline: Nirupama Kulkarni [nirupama.kulkarni@cafral.org.in] (*,a), Ulrike Malmendier [ulrike@berkeley.edu] (b)

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Source Citation   

Gale Document Number: GALE|A706769210