Homeownership Segregation

Nirupama Kulkarni and Ulrike Malmendier

Working Papers from Centre for Advanced Financial Research and Learning (CAFRAL)

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.

Keywords: Intergenerational mobility; homeownership; segregation; restrictive land-use regulation (search for similar items in EconPapers)
JEL-codes: D14 J15 R21 R23 (search for similar items in EconPapers)
Pages: 52
Date: 2022-05
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Published in Journal of Monetary Economics

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Journal Article: Homeownership segregation (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:cafral:022286

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