Document Type
Working Paper
Publication Date
6-15-2017
College/Unit
Chambers College of Business and Economics
Document Number
17-21
Department/Program/Center
Economics
Abstract
In most housing transactions the home buyer and seller do not meet, in which case the buyer's race is not revealed and the seller cannot discriminate against them. Despite this fact, previous studies estimate racial price differentials based on the race of the home buyer. In this study we identify the dimensions along which differential treatment occurs in housing markets. We show that home buyers disproportionately hire real estate agents of the same race and that the race of the agent, not the home buyer, is the primary mechanism of discrimination. The results of this study have important implications for fair housing policy.
Digital Commons Citation
Nowak, Adam D. and Smith, Patrick S., "Agent Intermediation and Racial Price Differentials" (2017). Economics Faculty Working Papers Series. 236.
https://researchrepository.wvu.edu/econ_working-papers/236