Template-type: ReDif-Paper 1.0
Author-Name: Ong C. 
Author-Name: Witte K. de
Author-workplace-name: UNU-MERIT
Title: Ethnic segregation and heterogeneous preferences of homeowners for housing and neighbourhood characteristics : evidence from the Netherlands
Abstract: This paper examines ethnically differentiated preferences for neighbourhood ethniccomposition among homeowners in the Netherlands. Borrowing from price hedonic theory, it tests a fully nonparametric empirical model of housing choice. We exploit rich neighbourhood-level administrative data linked to the 2009 Dutch Housing and Living Survey. The nonparametric analysis proceeds in two steps. First, housing prices are decomposed into attribute-specific implicit prices. These price hedonic estimates indicate a significant negative effect of the percentage of non-western minority residents in a neighbourhood on housing prices. For the second step and using the recovered household preference parameters, the marginal willingness to pay for an increase in non-western minority neighbours is estimated. Our model predicts an average decrease in dwelling price of 697 for every 10 per cent increase in non-western neighbours. The paper finds evidence of assimilation with some homeowners of non-western migrant background having a negative willingness to pay for living next to more co-ethnic neighbours.
Keywords: Household Analysis, Housing Demand, Regional Migration, Regional Labor Markets, Population, Neighborhood Characteristics, Housing Supply and Markets 
Classification-JEL: R20, R21, R23, R31, R32
Series: UNU-MERIT Working Papers
Creation-Date: 2013
Number: 2013-061
File-URL: https://unu-merit.nl/publications/wppdf/2013/wp2013-061.pdf
File-Format: application/pdf
File-Size: 632238
Handle: RePEc:unm:unumer:2013061