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Jeudi 14 Janvier 2010

Bruno DECREUSE (GREQAM, Université d'Aix-Marseille
"The Neighbor is King : Customer Discrimination in the Housing Market (avec¨Pierre-Philippe COMBES, Benoit Schmutz, Alain Trannoy)

de 14 h à 15 h 30 en amphi 1  à l'ENSAE, 3 AVENUE PIERRE LAROUSSE i, 92245 MALAKOFF (Métro : Malakoff/Plateau de Vanves

Abstract : This paper provides a way of detecting customer-based discrimination in the housing market using survey data. Our identification strategy relies on a matching model with ethnic externalities where unprejudiced landlords are heterogenous with respect to the number of housing units they own within the same neighborhood. We show that in the event of customers' prejudice against the minority group, landlords who own several apartments discriminate more often than single-dwelling landlords. This prediction provides a straightforward test for customer discrimination, which we perform on the French Housing Survey. It is never rejected. Finally, a variant on the home-selling market is proposed, tested and not rejected either