Work

The Effects of the 1930s HOLC “Redlining” Maps

Year: 2021

Type: article

Abstract: This study uses a boundary design and propensity score methods to study the effects of the 1930s-era Home Owners Loan Corporation (HOLC) “redlining” maps on the long-run trajectories of urban neighborhoods. The maps led to reduced home ownership rates, house values, and rents and increased racial segregation in later decades. A comparison on either side of a city-level population cutoff that determined whether maps were drawn finds broadly similar conclusions. These results suggest the HOLC maps had meaningful and lasting effects on the development of urban neighborhoods through reduced credit access and subsequent disinvestment. (JEL G21, J15, N32, N42, N92, R23, R31)

Source: American Economic Journal Economic Policy

DOI: 10.1257/pol.20190414

Authors: Daniel Aaronson, Daniel Hartley, Bhashkar Mazumder

Institution: Federal Reserve Bank of Chicago

Language: English

Topic: Urban, Neighborhood, and Segregation Studies

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Sustainable cities and communities, Reduced inequalities

Open Access status: green

OpenAlex ID: W3121281090