Estimating the distortionary effects of ethnic quotas in Singapore using housing transactions

A-Tier
Journal: Journal of Public Economics
Year: 2014
Volume: 115
Issue: C
Pages: 131-145

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Desegregation is a key policy issue in many countries. I investigate a residential desegregation program in Singapore — the ethnic housing quotas. I show that choice restrictions imposed on apartment blocks above the quota limits (constrained) could have distortionary effects, causing price and quantity differences for constrained versus unconstrained blocks. I test these predictions by hand-matching more than 500,000 names in the phonebook to ethnicities, to calculate ethnic proportions at the apartment block level. I can then investigate differences for constrained and unconstrained blocks close to the quota limits and test for sorting around the limits. I find that price differences are between 3% and 5%. Quantity effects are economically significant, translating to longer time-on-market durations. Selection cannot fully explain these results. My results point to challenges in achieving desegregation using quantity restrictions.

Technical Details

RePEc Handle
repec:eee:pubeco:v:115:y:2014:i:c:p:131-145
Journal Field
Public
Author Count
1
Added to Database
2026-01-29