Introducing a vignette experiment to study mechanisms of ethnic discrimination on the housing market.

Abstract

Ethnic discrimination on the housing market has been subject of research for years. While a field experimental approach is widespread, alternative attempts to objectively measure mechanisms of discrimination on the housing market are scarce. In line with labor market research, we stress that to reduce rental discrimination against ethnic minorities, we need understanding its underlying mechanisms. This is the first paper that introduces a vignette experiment to do so. We distinguish between four mechanisms put forward in the literature but hardly ever empirically tested: agent taste-based discrimination, owner taste-based discrimination, neighborhood taste-based discrimination and statistical discrimination, in a multifactorial vignette experiment among 576 pre graduate real estate student. In addition, our experimental design allows us to examine whether unequal treatment is heterogeneous by property owner and neighborhood characteristics.