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The Gerontologist, Vol 36, Issue 3 350-360, Copyright © 1996 by The Gerontological Society of America


ARTICLES

Racial differences in home ownership and home equity among preretirement-aged households

SL Myers Jr and C Chung
Roy Wilkins Center for Human Relations and Social Justice, Hubert H. Humphrey Institute of Public Affairs, University of Minnesota, Minneapolis 55455, USA.

This article measures the racial disparities in home ownership and home equity among preretirement-aged households. It computes the proportion of the racial gap explained by discrimination in housing and credit markets. Maximum likelihood and nonlinear least squares estimates are obtained for models of home ownership probabilities and home equity, conditional on home ownership, yielding computations for expected home equity for black and white households. The results reveal an average discriminatory gap in expected home equity as a percent of the actual gap of 55%. In the top third of the family income distribution, the measured discriminatory gap is 82%; in the middle third it is 83%; in the lowest third it is 62%.


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Copyright © 1996 by The Gerontological Society of America.