Are immigrants buying to get in?: the role of ethnic clustering on
the homeownership propensities of 12 Toronto immigrant groups, 1996-2001
by Michael Haan
Business and Labour Market Analysis Division
Analytical Studies Branch research paper series, No. 252
Context
Numerous studies equate immigrant homeownership with assimilation into
the residential mainstream, though only rarely is this claim verified
by studying the ethnic character of neighbourhoods where immigrants
actually buy homes.
Objectives
In this paper, the 1996 and 2001 Census of Canada master files and
bivariate probit models with sample selection corrections (a.k.a. Heckman
probit models) are used to assess the neighbourhood-level ethnic determinants
of homeownership in Toronto.
Findings
After correcting for 'neighbourhood disequilibrium', or
the possibility that neighbourhood composition departs from what a family
prefers over time, 3 of the 12 groups in this study appear to consider
proximity to same-group members to help them make homeownership decisions.
Two of the groups, Chinese and Italians, have above-average levels of
ethnic capital and tend to seek homes close to other group members.
For Jamaicans, distance also seems to matter, although home purchases
are more likely to occur outside of enclaves. In all three cases, there
is an enclave effect on homeownership that is a function of group ethnic
capital. For the other 9 Toronto groups, proximity to same-group members
does not induce a tenure choice that would not otherwise be made.
Data Sources:Censuses of 1996 and 2001.
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