Naturalization and the transition to homeownership: an analysis of signalling in the Dutch housing market

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

This article pioneers in investigating a citizenship premium for homeownership of first-generation immigrants, using Dutch register data from Statistics Netherlands (N ¼ 106,187). I hypothesize that naturalization favourably influences the risk-calculation of lenders through positive signalling among employed migrants, who are likely to meet the basic financial criteria for credit. Results confirm that, all else constant, employed immigrants who have naturalized are 26% more likely to be homeowner. Additional analyses specifically designed to isolate endogeneity bias show that the effect is smaller, but still reveal an increase in the probability of homeownership after naturalization. Citizenship acquisition matters less for migrants with a native-born partner, suggesting that legal status discrimination may be an underlying mechanism. I find no evidence that the relevance of citizenship is conditioned by cultural distance of the origin country or the post-2008 economic crisis. I conclude that naturalization matters in the housing market, but that its relevance cannot be generalized to all migrant groups.
Original languageEnglish
Number of pages30
JournalHousing Studies
DOIs
Publication statusE-pub ahead of print - 26 Aug 2019

Keywords

  • Citizenship
  • Immigration
  • Homeownership
  • The Netherlands
  • WELFARE
  • immigration
  • PRICE
  • homeownership
  • WEALTH
  • the Netherlands
  • CITIZENSHIP
  • INCOME
  • IMMIGRANT NATURALIZATION
  • DYNAMICS
  • RACIAL-DISCRIMINATION
  • REFUGEES
  • HOME-OWNERSHIP

Cite this

@article{afb3a106a47540329c087e721b687aec,
title = "Naturalization and the transition to homeownership: an analysis of signalling in the Dutch housing market",
abstract = "This article pioneers in investigating a citizenship premium for homeownership of first-generation immigrants, using Dutch register data from Statistics Netherlands (N ¼ 106,187). I hypothesize that naturalization favourably influences the risk-calculation of lenders through positive signalling among employed migrants, who are likely to meet the basic financial criteria for credit. Results confirm that, all else constant, employed immigrants who have naturalized are 26{\%} more likely to be homeowner. Additional analyses specifically designed to isolate endogeneity bias show that the effect is smaller, but still reveal an increase in the probability of homeownership after naturalization. Citizenship acquisition matters less for migrants with a native-born partner, suggesting that legal status discrimination may be an underlying mechanism. I find no evidence that the relevance of citizenship is conditioned by cultural distance of the origin country or the post-2008 economic crisis. I conclude that naturalization matters in the housing market, but that its relevance cannot be generalized to all migrant groups.",
keywords = "Citizenship, Immigration, Homeownership, The Netherlands, WELFARE, immigration, PRICE, homeownership, WEALTH, the Netherlands, CITIZENSHIP, INCOME, IMMIGRANT NATURALIZATION, DYNAMICS, RACIAL-DISCRIMINATION, REFUGEES, HOME-OWNERSHIP",
author = "F.W.C. Peters",
year = "2019",
month = "8",
day = "26",
doi = "10.1080/02673037.2019.1654601",
language = "English",
journal = "Housing Studies",
issn = "0267-3037",
publisher = "Routledge/Taylor & Francis Group",

}

Naturalization and the transition to homeownership: an analysis of signalling in the Dutch housing market. / Peters, F.W.C.

In: Housing Studies, 26.08.2019.

Research output: Contribution to journalArticleAcademicpeer-review

TY - JOUR

T1 - Naturalization and the transition to homeownership: an analysis of signalling in the Dutch housing market

AU - Peters, F.W.C.

PY - 2019/8/26

Y1 - 2019/8/26

N2 - This article pioneers in investigating a citizenship premium for homeownership of first-generation immigrants, using Dutch register data from Statistics Netherlands (N ¼ 106,187). I hypothesize that naturalization favourably influences the risk-calculation of lenders through positive signalling among employed migrants, who are likely to meet the basic financial criteria for credit. Results confirm that, all else constant, employed immigrants who have naturalized are 26% more likely to be homeowner. Additional analyses specifically designed to isolate endogeneity bias show that the effect is smaller, but still reveal an increase in the probability of homeownership after naturalization. Citizenship acquisition matters less for migrants with a native-born partner, suggesting that legal status discrimination may be an underlying mechanism. I find no evidence that the relevance of citizenship is conditioned by cultural distance of the origin country or the post-2008 economic crisis. I conclude that naturalization matters in the housing market, but that its relevance cannot be generalized to all migrant groups.

AB - This article pioneers in investigating a citizenship premium for homeownership of first-generation immigrants, using Dutch register data from Statistics Netherlands (N ¼ 106,187). I hypothesize that naturalization favourably influences the risk-calculation of lenders through positive signalling among employed migrants, who are likely to meet the basic financial criteria for credit. Results confirm that, all else constant, employed immigrants who have naturalized are 26% more likely to be homeowner. Additional analyses specifically designed to isolate endogeneity bias show that the effect is smaller, but still reveal an increase in the probability of homeownership after naturalization. Citizenship acquisition matters less for migrants with a native-born partner, suggesting that legal status discrimination may be an underlying mechanism. I find no evidence that the relevance of citizenship is conditioned by cultural distance of the origin country or the post-2008 economic crisis. I conclude that naturalization matters in the housing market, but that its relevance cannot be generalized to all migrant groups.

KW - Citizenship

KW - Immigration

KW - Homeownership

KW - The Netherlands

KW - WELFARE

KW - immigration

KW - PRICE

KW - homeownership

KW - WEALTH

KW - the Netherlands

KW - CITIZENSHIP

KW - INCOME

KW - IMMIGRANT NATURALIZATION

KW - DYNAMICS

KW - RACIAL-DISCRIMINATION

KW - REFUGEES

KW - HOME-OWNERSHIP

U2 - 10.1080/02673037.2019.1654601

DO - 10.1080/02673037.2019.1654601

M3 - Article

JO - Housing Studies

JF - Housing Studies

SN - 0267-3037

ER -