"The ethnic housing quotas in Singapore provide a source of identi…cation. They were
introduced in 1989 to encourage residential integration amongst the three major ethnic
groups in Singapore –Chinese (77%), Malays (14%) and Indians (8%) (Singapore Census,
2000). The policy is a set of upper bounds on block level and neighborhood level ethnic
proportions. In practice, the Housing Development Board (HDB) did not want to evict
owners in units that were in violation of the quotas. To this day, there exist units above
the upper bound. Any transactions that forced these blocks and neighborhoods farther
above the upper bound, however, would be barred. For example, when Chinese quotas are
binding, non-Chinese sellers cannot sell to Chinese buyers because this transaction increases
the Chinese proportion farther above the Chinese quota. These ethnic-speci…c restrictions
on transactions play a central role in my analysis.
The quotas help identi…cation of ingroup preferenc"
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