Ethnic Identity and Immigrant Homeownership

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Abstract
Immigrants are much less likely to own their homes than natives, even after controlling for a broad range of life-cycle and socioeconomic characteristics and housing market conditions. This paper extends the analysis of immigrant housing tenure choice by explicitly accounting for ethnic identity as a potential influence on the homeowner-ship decision, using a two-dimensional composite index of ethnic identity that incorporates attachments to both origin and host cultures. In the case of Germany, the evidence suggests that immigrants with a stronger commitment to the host country are more likely to achieve homeownership for a given set of socioeconomic and demographic characteristics, regardless of their level of attachment to their home country.

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