Scandinavian Working Papers in Economics

Discussion Papers,
Statistics Norway, Research Department

No 547: Discrimination in Europe. Evidence from the Rental Market

Timothy K.M. Beatty and Dag Einar Sommervoll ()
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Dag Einar Sommervoll: Statistics Norway

Abstract: This paper considers statistical discrimination in rental markets, using a rich data set on rental contracts from Norway. We find that tenants born abroad pay a statistically significant and economically important premium for their dwelling units after controlling for a comprehensive set of apartment, individual and contract specific covariates. We also find that the premium is largest for tenants of African origin. Moreover, the children of parents born abroad also face a statistically significant and economically important rental premium.

Keywords: Statistical Discrimination; Rental Markets; Hedonic Regression

JEL-codes: J15; R21 June 2008

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