Access to housing credit and marriage: evidence from redlining maps

Abstract

This study evaluates the impact of a policy popularly known as “redlining” on marriage. This policy led to the creation of a series of maps that guided banks in their lending, where some areas were favored and others were discriminated against. Given the quasi-randomness of mortgage discrimination, this policy allows us to make inferences regarding whether housing credit constraints affect marriage. Furthermore, it also provides insight into whether unequal access to housing credit played a role in the contemporary racial marriage gap. This policy allows us to make these inferences due to the fact that neighborhood blocks that were more heavily discriminated against had higher proportions of Black residents. The study uses a spatial differences in discontinuities design to show that the maps led to a reduction in marriage in discriminated areas. These effects are shown to not be due to sorting. They can also be ascribed to the housing credit mechanism per se, rather than competing second-order mechanisms that result from individuals being denied mortgages. These second-order effects can include, for instance, neighborhood decline effects found in other redlining work.