Abstract :
[en] We presented participants to an online study in Luxembourg with fictitious real-estate advertisements, tasking them to appraise the described properties. A random subset was also shown sellers’ surnames, strongly framed to signal their origins. All else equal, sellers with sub-Saharan African surnames were systematically offered lower prices — amounting to an appraisal penalty of EUR 20,000. This figure is highly heterogeneous and can amount up to around EUR 58,000 for older and low-educated participants. We provide evidence that the appraisal bias likely passes through onto final sales prices and that it may be largely due to statistical rather than taste-based discrimination.
Funding text :
This research benefits from funding by the FNR Luxembourg National Research Fund, CORE Grant No. 3886 (Grant Recipient: Waltl 2021). The experimental part was approved by the LISER Ethics Committee on 31 March 2021 and was pre-registered via Open Science Framework (see Waltl, 2021). Sofie Waltl has carried out parts of her contributions to this work during her previous employment at LISER. We thank M. Denisa Naidin for excellent research assistance, Francesco Fallucchi, Nicolas Stamets and the entire LISER communications team for help in executing the survey and running social media campaigns. Further, we thank Sumit Agarwal, Shaun A. Bond, Fr\u00E9d\u00E9ric Docquier, Tibor Neugebauer, Ruchi Singh, David Smerdon, and participants in the 2022 WU Department of Economics Research Retreat, the 1st Workshop on Residential Housing: Perceptions and Measurement at LISER, the 36th ESPE Annual Conference, the 3rd DIW Workshop on Rent Control, the 8th Meeting of the Society of Economic Measurement (SEM), the 29th European Real Estate Society (ERES) Annual Conference, the 2023 American Real Estate and Urban Economics Association (AREUEA) International Conference, the 10th ECINEQ Meeting, the 2023 NOeG Conference, the workshop Zero-Carbon Commuting, Housing Mobility, and Spatial Equality: Challenges and Opportunities in the Post-Pandemic Era at the University of Cambridge, the 38th IARIW General Conference at King's College London, as well as seminar participants at the National Bank of Slovakia, the University of Queensland, the University of New South Wales, and the Doctoral Training Unit (DTU) 3E - Experiments, Ethics and Economics in Luxembourg for valuable comments and suggestions.This research benefits from funding by the FNR Luxembourg National Research Fund , CORE Grant No. 3886 (Waltl, 2021). The experimental part was approved by the LISER Ethics Committee on 31 March 2021 and was pre-registered via Open Science Framework (see Waltl, 2021). Sofie Waltl has carried out parts of her contributions to this work during her previous employment at LISER. We thank M. Denisa Naidin for excellent research assistance, Francesco Fallucchi, Nicolas Stamets and the entire LISER communications team for help in executing the survey and running social media campaigns. Further, we thank Sumit Agarwal, Shaun A. Bond, Fr\u00E9d\u00E9ric Docquier, Tibor Neugebauer, Ruchi Singh, David Smerdon, and participants in the 2022 WU Department of Economics Research Retreat, the LISER workshop Housing Markets: Perceptions and Measurement, the 36th ESPE Annual Conference, the 3rd DIW Workshop on Rent Control, the 8th Meeting of the Society of Economic Measurement (SEM), the 29th European Real Estate Society (ERES) Annual Conference, the 2023 American Real Estate and Urban Economics Association (AREUEA) International Conference, the 10th ECINEQ Meeting, the 2023 NOeG Conference, the workshop Zero-Carbon Commuting, Housing Mobility, and Spatial Equality: Challenges and Opportunities in the Post-Pandemic Era at the University of Cambridge, the 38th IARIW General Conference at King\u2019s College London as well as seminar participants at the National Bank of Slovakia, the University of Queensland, the University of New South Wales, and the Doctoral Training Unit (DTU) 3E - Experiments, Ethics and Economics in Luxembourg for valuable comments and suggestions.
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