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Segregation and Homeownership in the Early Twentieth Century

Trevon D. Logan, John M. Parman

American Economic Review · 2017 · Volume 107 · Issue 5

DOI: 10.1257/aer.p20171081

Abstract

We use new county-level segregation estimates for the period of 1880 to 1940 to document a general rise in residential segregation in both urban and rural counties occurring alongside rising homeownership rates. However, we find a negative correlation between segregation and homeownership across space for both black and white households. Following Fetter (2013), we show that living in a more segregated county substantially reduced the impact of GI Bill benefits on white homeownership rates, suggesting that segregated locations potentially hindered both white and black homeownership.

Keywords

Economics of Minorities, Races, Indigenous Peoples, and Immigrants, Non-labor Discrimination, Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: U.S., Canada: Pre-1913, Canada: 1913-, Regional and Urban History: U.S., Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration, Regional Labor Markets, Population, Neighborhood Characteristics, Housing Supply and Markets

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