Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279116 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16418
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Participants to an online study in Luxembourg are presented with fictitious real-estate advertisements and tasked to make an offer for each of them. A random subset is also shown sellers' names that are strongly framed to signal their origins. Our randomised procedure allows us to conclude that, keeping everything else constant, a seller with a sub-Saharan African surname is systematically offered lower prices. Our most conservative estimates suggest that the average racial appraisal penalty is equal to roughly EUR 20,000. This figure is highly heterogeneous and can amount up to around EUR 58,000. Last, we provide evidence suggesting that this appraisal bias may very well pass through onto the final sales price and that it may be due to statistical discrimination.
Subjects: 
racial discrimination
housing
randomised online experiment
JEL: 
J15
R21
R31
Document Type: 
Working Paper

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