[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_10369.html
   My bibliography  Save this paper

Price and Prejudice: Housing Rents Reveal Racial Animus

Author

Listed:
  • Marius Brülhart
  • Gian-Paolo Klinke
  • Andrea Marcucci
  • Dominic Rohner
  • Mathias Thoenig
Abstract
We study market rents in the neighborhood of asylum seeker hosting centers. Our empirical setting exploits the quasi-random opening of centers and spatial allocation of asylum seekers in Switzerland. Rents within 0.7km of an active center are found on average to be 3.8% lower than rents in the control group. The price drop is more pronounced when centers host a higher share of asylum seekers from Sub-Saharan countries. In contrast, neither the religious affiliation of asylum seekers nor their inferred crime propensity affect prices significantly. Our findings are consistent with racial animus as the dominant driver of observed market outcomes.

Suggested Citation

  • Marius Brülhart & Gian-Paolo Klinke & Andrea Marcucci & Dominic Rohner & Mathias Thoenig, 2023. "Price and Prejudice: Housing Rents Reveal Racial Animus," CESifo Working Paper Series 10369, CESifo.
    • Handle: RePEc:ces:ceswps:_10369
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/cesifo1_wp10369.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kevin Lang & Ariella Kahn-Lang Spitzer, 2020. "Race Discrimination: An Economic Perspective," Journal of Economic Perspectives, American Economic Association, vol. 34(2), pages 68-89, Spring.
    2. Kevin Lang & Jee-Yeon K. Lehmann, 2012. "Racial Discrimination in the Labor Market: Theory and Empirics," Journal of Economic Literature, American Economic Association, vol. 50(4), pages 959-1006, December.
    3. Christian Dustmann & Kristine Vasiljeva & Anna Piil Damm, 2019. "Refugee Migration and Electoral Outcomes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(5), pages 2035-2091.
    4. Andreas Steinmayr, 2016. "Exposure to Refugees and Voting for the Far-Right. (Unexpected) Results from Austria," WIFO Working Papers 514, WIFO.
    5. Lucija Muehlenbachs & Elisheba Spiller & Christopher Timmins, 2015. "The Housing Market Impacts of Shale Gas Development," American Economic Review, American Economic Association, vol. 105(12), pages 3633-3659, December.
    6. Milo Bianchi & Paolo Buonanno & Paolo Pinotti, 2012. "Do Immigrants Cause Crime?," Journal of the European Economic Association, European Economic Association, vol. 10(6), pages 1318-1347, December.
    7. Cáceres-Delpiano, Julio & De Moragas, Antoni-Italo & Facchini, Gabriel & González, Ignacio, 2021. "Intergroup contact and nation building: Evidence from military service in Spain," Journal of Public Economics, Elsevier, vol. 201(C).
    8. Ernesto Dal Bó & Pedro Dal Bó, 2011. "Workers, Warriors, And Criminals: Social Conflict In General Equilibrium," Journal of the European Economic Association, European Economic Association, vol. 9(4), pages 646-677, August.
    9. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
    10. Dominic Rohner & Mathias Thoenig & Fabrizio Zilibotti, 2013. "War Signals: A Theory of Trade, Trust, and Conflict," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(3), pages 1114-1147.
    11. Dustmann Christian & Preston Ian P, 2007. "Racial and Economic Factors in Attitudes to Immigration," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-41, November.
    12. Brian Bell & Francesco Fasani & Stephen Machin, 2013. "Crime and Immigration: Evidence from Large Immigrant Waves," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1278-1290, October.
    13. Morgane Laouénan & Roland Rathelot, 2022. "Can Information Reduce Ethnic Discrimination? Evidence from Airbnb," American Economic Journal: Applied Economics, American Economic Association, vol. 14(1), pages 107-132, January.
    14. Enrico Spolaore & Romain Wacziarg, 2018. "Ancestry and development: New evidence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 33(5), pages 748-762, August.
    15. Pope, Devin G. & Pope, Jaren C., 2015. "When Walmart comes to town: Always low housing prices? Always?," Journal of Urban Economics, Elsevier, vol. 87(C), pages 1-13.
    16. Dealy, Bern C. & Horn, Brady P. & Berrens, Robert P., 2017. "The impact of clandestine methamphetamine labs on property values: Discovery, decontamination and stigma," Journal of Urban Economics, Elsevier, vol. 99(C), pages 161-172.
    17. Morten Størling Hedegaard & Jean-Robert Tyran, 2018. "The Price of Prejudice," American Economic Journal: Applied Economics, American Economic Association, vol. 10(1), pages 40-63, January.
    18. Manasi Deshpande & Yue Li, 2019. "Who Is Screened Out? Application Costs and the Targeting of Disability Programs," American Economic Journal: Economic Policy, American Economic Association, vol. 11(4), pages 213-248, November.
    19. Cl'ement de Chaisemartin & Xavier D'Haultfoeuille, 2020. "Difference-in-Differences Estimators of Intertemporal Treatment Effects," Papers 2007.04267, arXiv.org, revised Nov 2023.
    20. Laura Jaitman & Stephen Machin, 2013. "Crime and immigration: new evidence from England and Wales," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.
    21. Timothy Besley & Hannes Mueller, 2012. "Estimating the Peace Dividend: The Impact of Violence on House Prices in Northern Ireland," American Economic Review, American Economic Association, vol. 102(2), pages 810-833, April.
    22. David Neumark, 2018. "Experimental Research on Labor Market Discrimination," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 799-866, September.
    23. repec:dau:papers:123456789/5382 is not listed on IDEAS
    24. Butts, Kyle, 2023. "JUE Insight: Difference-in-differences with geocoded microdata," Journal of Urban Economics, Elsevier, vol. 133(C).
    25. Otto, Alkis Henri & Steinhardt, Max Friedrich, 2014. "Immigration and election outcomes — Evidence from city districts in Hamburg," Regional Science and Urban Economics, Elsevier, vol. 45(C), pages 67-79.
    26. Mathieu Couttenier & Veronica Petrencu & Dominic Rohner & Mathias Thoenig, 2019. "The Violent Legacy of Conflict: Evidence on Asylum Seekers, Crime, and Public Policy in Switzerland," American Economic Review, American Economic Association, vol. 109(12), pages 4378-4425, December.
    27. Yinger, John, 1986. "Measuring Racial Discrimination with Fair Housing Audits: Caught in the Act," American Economic Review, American Economic Association, vol. 76(5), pages 881-893, December.
    28. Samii, Cyrus, 2013. "Perils or Promise of Ethnic Integration? Evidence from a Hard Case in Burundi," American Political Science Review, Cambridge University Press, vol. 107(3), pages 558-573, August.
    29. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    30. Rohner, Dominic & Couttenier, Mathieu & Preotu, Veronica, 2016. "The Violent Legacy of Victimization: Post-Conflict Evidence on Asylum Seekers, Crimes and Public Policy in Switzerland," CEPR Discussion Papers 11079, C.E.P.R. Discussion Papers.
    31. Leigh Linden & Jonah E. Rockoff, 2008. "Estimates of the Impact of Crime Risk on Property Values from Megan's Laws," American Economic Review, American Economic Association, vol. 98(3), pages 1103-1127, June.
    32. Barone, Guglielmo & D'Ignazio, Alessio & de Blasio, Guido & Naticchioni, Paolo, 2016. "Mr. Rossi, Mr. Hu and politics. The role of immigration in shaping natives' voting behavior," Journal of Public Economics, Elsevier, vol. 136(C), pages 1-13.
    33. Myohl, Nadia & Stadelmann, Sabrina, 2020. "You Say Hello and I Say Goodbye? Natives’ Reactions to Openings of Asylum Centers," Economics Working Paper Series 2012, University of St. Gallen, School of Economics and Political Science.
    34. Pope, Jaren C., 2008. "Fear of crime and housing prices: Household reactions to sex offender registries," Journal of Urban Economics, Elsevier, vol. 64(3), pages 601-614, November.
    35. Congdon-Hohman, Joshua M., 2013. "The lasting effects of crime: The relationship of discovered methamphetamine laboratories and home values," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 31-41.
    36. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    37. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
    38. Doruk Cengiz & Arindrajit Dube & Attila Lindner & Ben Zipperer, 2019. "The Effect of Minimum Wages on Low-Wage Jobs," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(3), pages 1405-1454.
    39. Kenneth Y. Chay & Michael Greenstone, 2005. "Does Air Quality Matter? Evidence from the Housing Market," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 376-424, April.
    40. Okunogbe,Oyebola Motunrayo, 2018. "Does Exposure to Other Ethnic Regions Promote National Integration? : Evidence from Nigeria," Policy Research Working Paper Series 8606, The World Bank.
    41. Daams, Michiel N. & Proietti, Paola & Veneri, Paolo, 2019. "The effect of asylum seeker reception centers on nearby house prices: Evidence from The Netherlands," Journal of Housing Economics, Elsevier, vol. 46(C).
    42. Collins, William J. & Margo, Robert A., 2007. "The Economic Aftermath of the 1960s Riots in American Cities: Evidence from Property Values," The Journal of Economic History, Cambridge University Press, vol. 67(4), pages 849-883, December.
    43. van Vuuren, Aico & Kjellander, Josef & Nilsson, Viktor, 2019. "Refugees and apartment prices: A case study to investigate the attitudes of home buyers," Regional Science and Urban Economics, Elsevier, vol. 77(C), pages 20-37.
    44. Dominik Hangartner & Daniel Kopp & Michael Siegenthaler, 2021. "Monitoring hiring discrimination through online recruitment platforms," Nature, Nature, vol. 589(7843), pages 572-576, January.
    45. Rosen, Kenneth T & Smith, Lawrence B, 1983. "The Price-Adjustment Process for Rental Housing and the Natural Vacancy Rate," American Economic Review, American Economic Association, vol. 73(4), pages 779-786, September.
    46. Michael Ewens & Bryan Tomlin & Liang Choon Wang, 2014. "Statistical Discrimination or Prejudice? A Large Sample Field Experiment," The Review of Economics and Statistics, MIT Press, vol. 96(1), pages 119-134, March.
    47. Hainmueller, Jens & Hiscox, Michael J., 2007. "Educated Preferences: Explaining Attitudes Toward Immigration in Europe," International Organization, Cambridge University Press, vol. 61(2), pages 399-442, April.
    48. Janet Currie & Lucas Davis & Michael Greenstone & Reed Walker, 2015. "Environmental Health Risks and Housing Values: Evidence from 1,600 Toxic Plant Openings and Closings," American Economic Review, American Economic Association, vol. 105(2), pages 678-709, February.
    49. Alrababa’H, Ala’ & Marble, William & Mousa, Salma & Siegel, Alexandra A., 2021. "Can Exposure to Celebrities Reduce Prejudice? The Effect of Mohamed Salah on Islamophobic Behaviors and Attitudes," American Political Science Review, Cambridge University Press, vol. 115(4), pages 1111-1128, November.
    50. Bansak, Kirk & Hainmueller, Jens & Hangartner, Dominik, 2016. "How economic, humanitarian, and religious concerns shape European attitudes toward asylum seekers," LSE Research Online Documents on Economics 67898, London School of Economics and Political Science, LSE Library.
    51. Hainmueller, Jens & Hangartner, Dominik, 2013. "Who Gets a Swiss Passport? A Natural Experiment in Immigrant Discrimination," American Political Science Review, Cambridge University Press, vol. 107(1), pages 159-187, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kayaoglu, Aysegul, 2022. "Do refugees cause crime?," World Development, Elsevier, vol. 154(C).
    2. Sekou Keita & Thomas Renault & Jérôme Valette, 2024. "The Usual Suspects: Offender Origin, Media Reporting and Natives’ Attitudes Towards Immigration," The Economic Journal, Royal Economic Society, vol. 134(657), pages 322-362.
    3. Taggert J. Brooks & Brad R. Humphreys & Adam Nowak, 2020. "Strip Clubs, “Secondary Effects” and Residential Property Prices," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 48(3), pages 850-885, September.
    4. Taggert J. Brooks & Brad R. Humphreys & Adam Nowak, 2016. "Strip Clubs, “Secondary Effects,†and Residential Property Prices," Working Papers 16-17, Department of Economics, West Virginia University.
    5. Guignet, Dennis & Jenkins, Robin R. & Belke, James & Mason, Henry, 2023. "The property value impacts of industrial chemical accidents," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    6. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr, 2018. "The Effects of Immigration in Developed Countries: Insights from Recent Economic Research," CEPII Policy Brief 2018-22, CEPII research center.
    7. Guignet, Dennis & Jenkins, Robin R. & Nolte, Christoph & Belke, James, 2023. "The External Costs of Industrial Chemical Accidents: A Nationwide Property Value Study," Journal of Housing Economics, Elsevier, vol. 62(C).
    8. Bruijn, L. Michelle & Ribas, Rafael P., 2022. "“No drugs in my back yard:” The ambivalent reception of cannabis retailers," Journal of Economic Behavior & Organization, Elsevier, vol. 199(C), pages 103-121.
    9. Gruhl, Henri & Volkhausen, Nicolas & Pestel, Nico & aus dem Moore, Nils, 2022. "Air pollution and the housing market: Evidence from Germany's Low Emission Zones," Ruhr Economic Papers 977, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    10. Eugenio Levi & Rama Dasi Mariani & Fabrizio Patriarca, 2020. "Hate at first sight? Dynamic aspects of the electoral impact of migration: the case of Ukip," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(1), pages 1-32, January.
    11. Daams, Michiel N. & Proietti, Paola & Veneri, Paolo, 2019. "The effect of asylum seeker reception centers on nearby house prices: Evidence from The Netherlands," Journal of Housing Economics, Elsevier, vol. 46(C).
    12. Hansen, Ole-Petter Moe & Legge, Stefan, 2017. "Quantifying Determinants of Immigration Preferences," Economics Working Paper Series 1710, University of St. Gallen, School of Economics and Political Science.
    13. Zimmermann, Severin & Stutzer, Alois, 2022. "The consequences of hosting asylum seekers for citizens’ policy preferences," European Journal of Political Economy, Elsevier, vol. 73(C).
    14. Elisa Facchetti, 2024. "Police infrastructure, police performance, and crime: Evidence from austerity cuts," IFS Working Papers W24/16, Institute for Fiscal Studies.
    15. Hussain, Iftikhar, 2023. "Housing market and school choice response to school quality information shocks✰," Journal of Urban Economics, Elsevier, vol. 138(C).
    16. Bas Scheer & Wiljan van den Berge & Maarten Goos & Alan Manning & Anna Salomons, 2022. "Alternative Work Arrangements and Worker Outcomes: Evidence from Payrolling," CPB Discussion Paper 435, CPB Netherlands Bureau for Economic Policy Analysis.
    17. Jakub Lonsky, 2021. "Does immigration decrease far-right popularity? Evidence from Finnish municipalities," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(1), pages 97-139, January.
    18. Zhou, Yang-Yang & Grossman, Guy & Ge, Shuning, 2023. "Inclusive refugee-hosting can improve local development and prevent public backlash," World Development, Elsevier, vol. 166(C).
    19. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr & Arthur Sweetman, 2020. "An introduction to the economics of immigration in OECD countries," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1365-1403, November.
    20. Sumit S. Deole & Yue Huang, 2024. "Suffering and prejudice: do negative emotions predict immigration concerns?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(2), pages 1-39, June.

    More about this item

    Keywords

    ethnic prejudice; willingness to pay; housing prices; refugee centers;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_10369. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.