Race and the Housing Cycle: Differences in Home Equity Trends Among Long-Term Homeowners

During the past decade, housing markets across the United States experienced dramatic upheaval. Housing prices rose rapidly throughout much of the country from 2000 until the start of 2007 and then fell sharply during the next 2 years. Many households lost substantial amounts of equity during this downturn; in aggregate, U.S. homeowners lost $7 trillion in equity from 2006 to 2009. Aggregate home equity holdings had fallen back to 2000 levels by early 2009. Whereas this intense volatility has been well documented, there remain unanswered questions about the variation in experiences across racial groups, particularly among those who purchased their homes before the boom and kept them through the collapse of the market. Did this housing market upheaval widen the already large racial and ethnic gaps in housing wealth? Using the American Housing Survey, we analyze differences in the changes in home equity experienced by homeowners of different races and ethnicities between 2003 and 2009. We focus on homeowners who remained in their homes over this period, and find that blacks and Hispanics gained less home equity than whites and were more likely to end the period underwater. Black–white gaps were driven in part by racial disparities in income and education and differences in types of homes purchased. Latino–white disparities were most dramatic during the market’s bust.     

Gender targets and trickle-down effects: Avoiding the ‘decoupling dynamics’ that limit female representation in senior roles

Women constitute the majority of the Australian public sector workforce, but their representation in senior roles is not proportional. Australian public services have gender targets to improve the representation of women in senior roles. Based on previous research, targets are expected to first increase female representation at the target's focal level, such as executive level. Then they should initiate a trickle-down effect (TDE), increasing female representation at the level immediately below the target's focal level, such as the executive feeder level. However, the TDE observed in a state public service decelerated after a gender target was imposed. We identified whether individual departments had a consistent or inconsistent TDE and conducted 13 semi-structured interviews with key stakeholders. Too many service-wide targets with low prioritisation of a gender target, as well as missing and ineffective practices, generated decoupling dynamics. Only departments with gender champions who had visible backing from the Chief Executive were able to keep the gender target coupled with practice to achieve its intended outcomes.

Points for practitioners

• Gender targets in Australian public services may not be achieving intended outcomes due to decoupling—a response to policies in which the policies are ignored and/or ineffective practices are implemented.
• Too many competing targets and limited accountability for achieving a gender target create a potential for decoupling by allowing individuals and groups to ignore or weakly adopt the policy.
• Integrated bundles of top-down (e.g. requiring at least two women on shortlists) and bottom-up practices (e.g. mentoring) can help avoid decoupling by ensuring women are appointed to senior roles and supported to progress through an organisation.
• Chief Executives are key to ensuring a gender target remains coupled with its implementation; Chief Executives must provide visible support to internal champions to make gender targets effective.