On the Impact of Federal Housing Policies on Racial Inequality
- (pp. 229-33)
Abstract
Using data on the value of Federal Housing Administration (FHA) mortgage insurance between 1935 and 1939, I estimate the effect of the agency's program on racial disparities in home ownership and home values. The distance between an FHA office and counties within its jurisdiction is used as an instrument. I find that insurance activity had a negligible effect on the racial gap in home ownership and a sizable effect on the gap in home values. Results suggest that while African American households continued to acquire homes, they may have chosen lower-priced properties, as they lacked the same access to credit as White buyers.Citation
Ali, Omer. 2022. "On the Impact of Federal Housing Policies on Racial Inequality." AEA Papers and Proceedings, 112: 229-33. DOI: 10.1257/pandp.20221105Additional Materials
JEL Classification
- D63 Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- G21 Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- G28 Financial Institutions and Services: Government Policy and Regulation
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- N22 Economic History: Financial Markets and Institutions: U.S.; Canada: 1913-
- R31 Housing Supply and Markets
- R38 Production Analysis and Firm Location: Government Policy