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- handle: 10670/1.g0bw4r
- halshs: halshs-00793403
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Pierre-Philippe Combes et al., « The Neighbor is King: Customer Discrimination in the Housing Market », HAL-SHS : économie et finance, ID : 10670/1.g0bw4r
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This paper provides a method to single out customer-based discrimination in the housing market. We build a matching model with ethnic externalities where landlords differ in the number of housing units they own within the same building. Multiple-dwelling landlords discriminate more often than single-dwelling landlords only if some tenants are prejudiced against the minority group. By testing the null hypothesis whereby minority tenants are equally likely to have a multiple-dwelling landlord, we can test whether there is customer discrimination or not. We run the test on French data and show evidence of customer discrimination in the rental market.