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Page i Measuring Housing Discrimination in a National Study REPORT OF A WORKSHOP Committee on National Statistics Angela Williams Foster, Faith Mitchell, and Stephen E. Fienberg, Editors Division of Behavioral and Social Sciences and Education National Research Council NATIONAL ACADEMY PRESS Washington, DC

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Page ii NATIONAL ACADEMY PRESS 2101 Constitution Avenue, N.W. Washington, DC 20418 NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance. The project that is the subject of this report was supported by contract SES-9709489 between the National Academy of Sciences and the Department of Housing and Urban Development. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the views of the organizations or agencies that provided support for the project. International Standard Book Number 0-309-08325-7 Additional copies of this report are available from National Academy Press , 2101 Constitution Avenue, N.W. , Lockbox 285, Washington, DC 20055 ; (800) 624-6242 or (202) 334-3313 (in the Washington metropolitan area); Internet, http://www.nap.edu Suggested Citation: National Research Council (2002) Measuring Housing Discrimination in a National Study: Report of a Workshop. Committee on National Statistics. Angela Williams Foster, Faith Mitchell, Stephen E. Fienberg, Editors. Division of Behavioral and Social Sciences and Education. Washington, DC: National Academy Press. Printed in the United States of America Copyright 2002 by the National Academy of Sciences . All rights reserved.

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Page iii THE NATIONAL ACADEMIES National Academy of Sciences National Academy of Engineering Institute of Medicine National Research Council The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Bruce M. Alberts is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. Wm. A. Wulf is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Kenneth I. Shine is president of the Institute of Medicine. The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy's purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Bruce M. Alberts and Dr. Wm. A. Wulf are chairman and vice chairman, respectively, of the National Research Council.

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Page iv

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Page v COMMITTEE ON NATIONAL STATISTICS 2000-2001 JOHN E. ROLPH (Chair), Marshall School of Business, University of Southern California JOSEPH G. ALTONJI, Department of Economics, Northwestern University LAWRENCE D. BROWN, Department of Statistics, University of Pennsylvania JULIE DAVANZO, RAND, Santa Monica, California WILLIAM F. EDDY, Department of Statistics, Carnegie Mellon University ROBERT M. GROVES, Joint Program in Survey Methodology, University of Maryland, College Park JOEL HOROWITZ, Department of Economics, University of Iowa HERMANN HABERMANN, Statistics Division, United Nations, New York WILLIAM D. KALSBEEK, Survey Research Unit, Department of Biostatistics, University of North Carolina RODERICK J.A. LITTLE, School of Public Health, University of Michigan THOMAS A. LOUIS, RAND, Arlington, VA DARYL PREGIBON, AT&T Laboratories-Research, Florham Park, New Jersey FRANCISCO J. SAMANIEGO, Division of Statistics, University of California, Davis RICHARD L. SCHMALENSEE, Sloan School of Management, Massachusetts Institute of Technology ANDREW A. WHITE, Director

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Page vi

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Page vii Preface This report summarizes the main points made at a workshop held September 22-23, 2000, to review the design plan for a national study to measure discrimination in housing. The Committee on National Statistics of the National Research Council convened the workshop in response to a request from the Office of Policy Development and Research of the Department of Housing and Urban Development (HUD). The workshop discussions encompassed a critique of the methods to be used for the national study, as well as the issues of how to define and measure discrimination. In addition to contributing to HUD's work, it is hoped that this report will advance thinking about methods for assessing discrimination, whether in housing or in other areas. The workshop was chaired by Stephen E. Fienberg, Maurice Falk University Professor of Statistics and Social Science, Carnegie Mellon University, and overseen by a subcommittee of the Committee on National Statistics comprising Joseph Altonji, Department of Economics, Northwestern University; Roderick Little, School of Public Health, University of Michigan; and Charles Manski, Department of Economics, Northwestern University. The editors would like to thank the presenters for their contributions to the discussion. They include Joseph Altonji, Lawrence Bobo, Nancy Denton, Arthur Goldberger, Tom Jabine, Sanders Korenman, Tom Louis, Charles Manski, Susan Murphy, Steve Ross, Rob Santos, Gregory Squires, Margery Turner, and Min Zhou. In addition, George Galster participated in an earlier planning meeting that helped set the stage for the

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Page viii workshop. The editors also thank HUD for its sponsorship of the workshop, and for its patience in awaiting this final report. A full list of the workshop participants, with their affiliations, is provided in Appendix C. This report has been reviewed in draft form by individuals chosen for their diverse perspectives and technical expertise, in accordance with procedures approved by the Report Review Committee of the National Research Council. The purpose of this independent review is to provide candid and critical comments that will assist the institution in making its published report as sound as possible and to ensure that the report meets institutional standards for objectivity, evidence, and responsiveness to the study charge. The review comments and draft manuscript remain confidential to protect the integrity of the deliberative process. We thank the following individuals for their participation in the review of this report: Mary Frances Berry, Department of History, University of Pennsylvania, and chair, U.S. Commission on Civil Rights; Xavier de Souza Briggs, JFK School of Government, Harvard University; Alicia H. Munnell, Carroll School of Management, Boston College; William Rodgers, Department of Economics, College of William and Mary; and David R. Williams, Institute for Social Research, University of Michigan. Although the reviewers listed above have provided many constructive comments and suggestions, they were not asked to endorse the conclusions or recommendations nor did they see the final draft of the report before its release. The review of this report was overseen by Eugene Hammel, Department of Demography, University of California at Berkeley. Appointed by the National Research Council, he was responsible for making certain that an independent examination of this report was carried out in accordance with institutional procedures and that all review comments were carefully considered. Responsibility for the final content of this report rests entirely with the authoring committee and the institution. Angela Williams Foster, Faith Mitchell, and Stephen E. Fienberg, Editors

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Page ix Contents 1     Introduction 1 2     Overview of the 2000 Housing Discrimination Study 7 3     Defining the Population of Interest 15 4     Defining Housing Discrimination 21 5     Developing a Model of Housing Discrimination 25 6     Auditing Discrimination in Underserved Communities 38 References 48 Appendices     A     Paired Testing and the 2000 Housing Discrimination Survey Stephen L. Ross 49     B     Audit Studies and the Assessment of Discrimination S.A. Murphy 67     C     Workshop Materials 73

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