[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/jhouse/v40y2018icp142-156.html
   My bibliography  Save this article

There's no place like home: Racial disparities in household formation in the 2000s

Author

Listed:
  • Newman, Sandra
  • Holupka, Scott
  • Ross, Stephen L.
Abstract
This paper uses the Panel Study of Income Dynamics to explore the decisions of black and white young adults to remain in their parents' home or to form their own household during the tumultuous 2001-2013 period. We use MSA fixed effects to capture geographic heterogeneity and develop exogenous measures of housing and labor market contexts using Census and ACS PUMS data. We then run a Oaxaca-Blinder style decomposition analysis to explain the race gap in household formation over this 13-year period, and conduct several robustness checks. We find strong support for the influence of economic context, with strikingly different results by race. Blacks were most sensitive to rents, which increased more dramatically for black young adults over most of the 2001-2013 period compared with whites' rents. The results also suggest that blacks were operating in strongly segmented housing markets throughout this period. In contrast, whites were most sensitive to employment rates, which decreased for white young adults over this period from 75 percent in 2001 to 70 percent in 2013. Despite their unrestricted access to the entire labor market, falling employment proved a significant deterrent to new household formation for white young adults.

Suggested Citation

  • Newman, Sandra & Holupka, Scott & Ross, Stephen L., 2018. "There's no place like home: Racial disparities in household formation in the 2000s," Journal of Housing Economics, Elsevier, vol. 40(C), pages 142-156.
    • Handle: RePEc:eee:jhouse:v:40:y:2018:i:c:p:142-156
    DOI: 10.1016/j.jhe.2018.04.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1051137717302164
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jhe.2018.04.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gary S. Becker, 1981. "A Treatise on the Family," NBER Books, National Bureau of Economic Research, Inc, number beck81-1.
    2. Jordan Matsudaira, 2016. "Economic conditions and the living arrangements of young adults: 1960 to 2011," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 167-195, January.
    3. Lee, Kwan Ok & Painter, Gary, 2013. "What happens to household formation in a recession?," Journal of Urban Economics, Elsevier, vol. 76(C), pages 93-109.
    4. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 257-298, National Bureau of Economic Research, Inc.
    5. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    6. Jordan D. Matsudaira, 2016. "Economic conditions and the living arrangements of young adults: 1960 to 2011," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 167-195, January.
    7. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    8. Michael W. L. Elsby & Bart Hobijn & Aysegul Sahin, 2010. "The Labor Market in the Great Recession," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 41(1 (Spring), pages 1-69.
    9. Haurin, Donald R & Hendershott, Patric H & Kim, Dongwook, 1993. "The Impact of Real Rents and Wages on Household Formation," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 284-293, May.
    10. Timothy Dunne, 2012. "Household formation and the great recession," Economic Commentary, Federal Reserve Bank of Cleveland, issue Aug.
    11. Leslie Whittington & H. Elizabeth Peters, 1996. "Economic incentives for financial and residential independence," Demography, Springer;Population Association of America (PAA), vol. 33(1), pages 82-97, February.
    12. Kerwin Kofi Charles & Erik Hurst & Matthew J. Notowidigdo, 2018. "Housing Booms and Busts, Labor Market Opportunities, and College Attendance," American Economic Review, American Economic Association, vol. 108(10), pages 2947-2994, October.
    13. Sandra J. Newman & C. Scott Holupka, 2016. "Is Timing Everything? Race, Homeownership and Net Worth in the Tumultuous 2000s," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 44(2), pages 307-354, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chan, Sewin & O'Regan, Katherine & You, Wei, 2021. "Migration choices of the boomerang generation: Does returning home dampen labor market adjustment?," Journal of Housing Economics, Elsevier, vol. 53(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cooper, Daniel & Luengo-Prado, María José, 2018. "Household formation over time: Evidence from two cohorts of young adults," Journal of Housing Economics, Elsevier, vol. 41(C), pages 106-123.
    2. Christopoulou, Rebekka & Pantalidou, Maria, 2017. "The parental home as labor market insurance for young Greeks during the crisis," GLO Discussion Paper Series 158, Global Labor Organization (GLO).
    3. Christopoulou, Rebekka & Pantalidou, Maria, 2022. "The parental home as labor market insurance for young Greeks during the Great Recession," Journal of Demographic Economics, Cambridge University Press, vol. 88(3), pages 313-350, September.
    4. Adriana M. Reyes, 2022. "Race and Ethnic Differences in Financial Dependency of Coresident Young Adults During Economic Recessions and Over Time," Journal of Family and Economic Issues, Springer, vol. 43(1), pages 51-65, March.
    5. Michael E. Martell & Peyton Nash, 2020. "For Love and Money? Earnings and Marriage Among Same-Sex Couples," Journal of Labor Research, Springer, vol. 41(3), pages 260-294, September.
    6. repec:pri:rpdevs:vogl_family_size is not listed on IDEAS
    7. Vani Borooah & Sriya Iyer, 2005. "Vidya, Veda, and Varna: The influence of religion and caste on education in rural India," Journal of Development Studies, Taylor & Francis Journals, vol. 41(8), pages 1369-1404.
    8. Richard Mussa, 2013. "Rural--urban differences in parental spending on children's primary education in Malawi," Development Southern Africa, Taylor & Francis Journals, vol. 30(6), pages 789-811, December.
    9. Ina GANGULI & Ricardo HAUSMANN & Martina VIARENGO, 2014. "Closing the gender gap in education: What is the state of gaps in labour force participation for women, wives and mothers?," International Labour Review, International Labour Organization, vol. 153(2), pages 173-207, June.
    10. Christina Boll & Malte Jahn & Andreas Lagemann, 2017. "The gender lifetime earnings gap—exploring gendered pay from the life course perspective," Journal of Income Distribution, Ad libros publications inc., vol. 25(1), pages 1-53, March.
    11. Samuel Dodini & Jeff Larrimore & Jenny Schuetz, 2016. "What are the Perceived Barriers to Homeownership for Young Adults?," Finance and Economics Discussion Series 2016-021, Board of Governors of the Federal Reserve System (U.S.).
    12. Katie R. Genadek & Sarah M. Flood & Joan Garcia Roman, 2016. "Trends in Spouses’ Shared Time in the United States, 1965–2012," Demography, Springer;Population Association of America (PAA), vol. 53(6), pages 1801-1820, December.
    13. Stephen P. Jenkins & John Micklewright, 2007. "New Directions in the Analysis of Inequality and Poverty," Discussion Papers of DIW Berlin 700, DIW Berlin, German Institute for Economic Research.
    14. Christopoulou, Rebekka & Pantalidou, Maria, 2018. "Who saved Greek youth? Parental support to young adults during the great recession," LSE Research Online Documents on Economics 91954, London School of Economics and Political Science, LSE Library.
    15. Dettling, Lisa J. & Hsu, Joanne W., 2018. "Returning to the nest: Debt and parental co-residence among young adults," Labour Economics, Elsevier, vol. 54(C), pages 225-236.
    16. Sile Padraigin O'Dorchai, 2008. "Do women gain or lose from becoming mothers?," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 51(2/3), pages 243-268.
    17. Jabłoński Łukasz, 2019. "Inequality in Economics: The Concept, Perception, Types, and Driving Forces," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 27(1), pages 17-43, March.
    18. Paweenawat, Sasiwimon Warunsiri & Liao, Lusi, 2022. "Parenthood penalty and gender wage gap: Recent evidence from Thailand," Journal of Asian Economics, Elsevier, vol. 78(C).
    19. Henrik Kleven & Camille Landais, 2017. "Gender Inequality and Economic Development: Fertility, Education and Norms," Economica, London School of Economics and Political Science, vol. 84(334), pages 180-209, April.
    20. Flinn, Christopher J. & Todd, Petra E & Zhang, Weilong, 2018. "Personality traits, intra-household allocation and the gender wage gap," European Economic Review, Elsevier, vol. 109(C), pages 191-220.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jhouse:v:40:y:2018:i:c:p:142-156. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622881 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.