No abstract

This paper applies Census microdata from 1980 and 1990 to assess the determinants of housing tenure choice among racial and ethnic groups in the Los Angeles metropolitan area. Like previous research, our results indicate that endowment differences (income, education, and immigrant status) largely explain the homeownership gap between Latinos and whites. In contrast to previous work, we find that Asians are as likely to choose homeownership as are whites, and that status as an immigrant did not portend lower homeownership rates among Asians. However, the endowment-adjusted homeownership choice differential between whites and blacks remains sizable; further, that gap more than doubled between 1980 and 1990, to a full 11 percentage points.

Teen out-of-wedlock mothers have lower education and earnings than do peers who have children later. This study uses the National Educational Longitudinal Survey of 1988 to examine the extent to which the apparent effects of out-of-wedlock teen childbearing are due to preexisting disadvantages of the young women and their families. We use a novel method that matches teen mothers to similar young women in their junior high school (that is, prior to pregnancy). We find that out-of-wedlock fertility reduces education substantially, although far less than the cross-sectional comparisons of means suggest. We further find that this effect is larger among those with lower probabilities of having a child out of wedlock. © 2003 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

The factors that influence housing demand have been well studied. Most studies focus on a household's socioeconomic status, and lifecycle considerations. Other studies focus on the external environment determined by housing market and economic conditions. However, very few studies have focused on how economic conditions affect the lifecycle of potential households directly. In particular, because the decision to form a household is influenced by economic conditions, potential households may choose to delay entry into the housing market, and remain living with one's parents during times of economic hardship. Other households may choose to share housing costs by combining households. We find that increases in the unemployment rate and the presence of recessions reduce the rate of household formation. Simulations suggest that these declines are substantively important. For example, in a recession, the likelihood that a young adult will form an independent household falls by 1 to 3 percentage points depending on the age of the person. By way of comparison, if an individual is unemployed, the likelihood of leaving the parental home is up to 11 percentage points lower.

Growing up in a family that lacks a biological father is correlated with a number of poor outcomes for youths. This study uses the National Educational Longitudinal Survey of 1988 (NELS) to examine the extent to which the apparent effects of divorce or remarriage are not causal, but are due to pre-existing problems or advantages of the family or youth. We find that the correlations between family structure and youth outcomes are causal: neither divorce nor remarriage appear to be related to pre-existing characteristics of the youth or family. Finally, unlike some previous research, we do not find gender differences in the effects of the presence of a father or stepfather. Acknowledgment:We appreciate useful comments from Clair Brown and Timothy Biblarz. All programs used in this project are available from the first author. (Data are available from the National Center for Education Statistics.)