Stephen L. Ross

Bio: Stephen L. Ross is an academic researcher from University of Connecticut. The author has contributed to research in topics: Housing discrimination & Loan. The author has an hindex of 43, co-authored 183 publications receiving 6354 citations. Previous affiliations of Stephen L. Ross include Syracuse University.

Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes

Abstract: We use a novel dataset and research design to empirically detect the effect of social interactions among neighbors on labor market outcomes. Specifically, using Census data that characterize residential and employment locations down to the city block, we examine whether individuals residing in the same block are more likely to work together than those in nearby blocks. We find evidence of significant social interactions operating at the block level: residing on the same versus nearby blocks increases the probability of working together by over 33 percent. The results also indicate that this referral effect is stronger when individuals are similar in sociodemographic characteristics (e.g., both have children of similar ages) and when at least one individual is well attached to the labor market. These findings are robust across various specifications intended to address concerns related to sorting and reverse causation. Further, having determined the characteristics of a pair of individuals that lead to an especially strong referral effect, we provide evidence that the increased availability of neighborhood referrals has a significant impact on a wide range of labor market outcomes including employment and wages.

Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes

Abstract: We use a novel research design to empirically detect the effect of social interactions on labor market outcomes. Using Census data on residential and employment locations, we examine whether individuals residing in the same city block are more likely to work together than those in nearby blocks. We find evidence of significant social interactions. The estimated referral effect is stronger when individuals are similar in sociodemographic characteristics. These findings are robust across specifications intended to address sorting and reverse causation. Further, the increased availability of neighborhood referrals has a significant impact on a wide range of labor market outcomes.

The Color of Credit: Mortgage Discrimination, Research Methodology, and Fair-Lending Enforcement

Abstract: In 2000, homeownership in the United States stood at an all-time high of 67.4 percent, but the homeownership rate was more than 50 percent higher for non-Hispanic whites than for blacks or Hispanics. Homeownership is the most common method for wealth accumulation and is viewed as critical for access to the most desirable communities and most comprehensive public services. Homeownership and mortgage lending are linked, of course, as the vast majority of home purchases are made with the help of a mortgage loan. Barriers to obtaining a mortgage represent obstacles to attaining the American dream of owning one's own home. These barriers take on added urgency when they are related to race or ethnicity.In this book Stephen Ross and John Yinger discuss what has been learned about mortgage-lending discrimination in recent years. They re-analyze existing loan-approval and loan-performance data and devise new tests for detecting discrimination in contemporary mortgage markets. They provide an in-depth review of the 1996 Boston Fed Study and its critics, along with new evidence that the minority-white loan-approval disparities in the Boston data represent discrimination, not variation in underwriting standards that can be justified on business grounds. Their analysis also reveals several major weaknesses in the current fair-lending enforcement system, namely, that it entirely overlooks one of the two main types of discrimination (disparate impact), misses many cases of the other main type (disparate treatment), and insulates some discriminating lenders from investigation. Ross and Yinger devise new procedures to overcome these weaknesses and show how the procedures can also be applied to discrimination in loan-pricing and credit-scoring.

Housing Discrimination in Metropolitan America: Explaining Changes between 1989 and 2000

Abstract: African Americans and Hispanics traditionally have faced many barriers that limit their access to and choice of housing. During summer and fall 2000, local fair housing organizations conducted 4,600 paired tests across 20 major metropolitan areas nationwide. These surveys directly compared real estate or rental offices' treatment of African Americans and Hispanics to that of whites. The 2000 study replicates a 1989 national paired testing study, providing the most complete information available about the persistence of housing market discrimination against African American and Hispanic home seekers. The study finds that disparate treatment discrimination in rental and owner-occupied housing markets persists, but has declined substantially in magnitude over the last decade. Key exceptions to this general decline are discrimination against Hispanics in access to rental housing, racial steering of African Americans, and less assistance to Hispanics in obtaining financing provided.

Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination

Abstract: We study race in the labor market by sending fictitious resumes to help-wanted ads in Boston and Chicago newspapers. To manipulate perceived race, resumes are randomly assigned African-American- or White-sounding names. White names receive 50 percent more callbacks for interviews. Callbacks are also more responsive to resume quality for White names than for African-American ones. The racial gap is uniform across occupation, industry, and employer size. We also find little evidence that employers are inferring social class from the names. Differential treatment by race still appears to still be prominent in the U.S. labor market. (JEL J71, J64).

Theories of Tax Competition

Abstract: A central message of the tax competition literature is that independent governments engage in wasteful competition for scarce capital through reductions in tax rates and public expendi- ture levels. This paper discusses many of the contributions to this literature, ranging from early demonstrations of wasteful tax com- petition to more recent contributions that identify efficiency- enhancing roles for competition among governments. Such roles involve considerations not present in earlier models, including im- perfectly-competitive market structures, government commitment problems, and political economy considerations.

The Sociology of Discrimination: Racial Discrimination in Employment, Housing, Credit, and Consumer Markets

Abstract: Persistent racial inequality in employment, housing, and a wide range of other social domains has renewed interest in the possible role of discrimination. And yet, unlike in the pre–civil rights era, when racial prejudice and discrimination were overt and widespread, today discrimination is less readily identifiable, posing problems for social scientific conceptualization and measurement. This article reviews the relevant literature on discrimination, with an emphasis on racial discrimination in employment, housing, credit markets, and consumer interactions. We begin by defining discrimination and discussing relevant methods of measurement. We then provide an overview of major findings from studies of discrimination in each of the four domains; and, finally, we turn to a discussion of the individual, organizational, and structural mechanisms that may underlie contemporary forms of discrimination. This discussion seeks to orient readers to some of the key debates in the study of discrimination and to provide a roadmap for those interested in building upon this long and important line of research.

The Effects of Social Networks on Employment and Inequality

Abstract: We develop a model where agents obtain information about job opportunities through an explicitly modeled network of social contacts. We show that employment is positively correlated across time and agents. Moreover, unemployment exhibits duration dependence: the probability of obtaining a job decreases in the length of time that an agent has been unemployed. Finally, we examine inequality between two groups. If staying in the labor market is costly and one group starts with a worse employment status, then that group's drop-out rate will be higher and their employment prospects will be persistently below that of the other group.

The Dynamics of Racial Residential Segregation

Abstract: ▪ Abstract The publication of American Apartheid (Massey & Denton 1993) was influential in shifting public discourse back toward racial residential segregation as fundamental to persisting racial inequality. At the end of the twentieth century, the majority of blacks remained severely segregated from whites in major metropolitan areas. Due to the persistence of high-volume immigration, Hispanic and Asian segregation from whites has increased, although it is still best characterized as moderate. This review examines trends in the residential segregation of blacks, Hispanics, and Asians and recent research focused on understanding the causes of persisting segregation. This discussion is organized around two broad theoretical perspectives—spatial assimilation and place stratification. After detailing the consequences of segregation for affected groups, I identify gaps in our understanding and goals for future research.