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Immigration and housing rents in Switzerland: Identification in a shift-share research design

Author

Listed:
  • Dario Fauceglia

    (Zurich University of Applied Sciences and University of St.Gallen)

  • Tilman Slembeck

    (Zurich University of Applied Sciences and University of St.Gallen)

Abstract

Drawing on geo-coded property data, we exploit aggregate immigration shocks in a shift-share instrument as the identifying quasi-random variation - conditional on control variables and fixed effects - to estimate the elasticity of residential housing rents to local immigration in Switzerland. In our balanced sample of municipalities the estimated average elasticity ranges between 2.40 and 2.98. Interestingly, exposure-robust inference, which avoids potentially downward biased standard errors in shift-share regressions as shown by Adao et al. (2019) (AKM), does not systematically decrease the precision of the estimated immigration effect in our application. However, these exposure-robust standard errors reveal that the elasticity of housing rents to immigration does not statistically differ from unity across specifications at the 5% significance level.

Suggested Citation

  • Dario Fauceglia & Tilman Slembeck, 2021. "Immigration and housing rents in Switzerland: Identification in a shift-share research design," Economics Bulletin, AccessEcon, vol. 41(4), pages 2561-2573.
    • Handle: RePEc:ebl:ecbull:eb-21-00339
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    More about this item

    Keywords

    bartik; shift-share instrument; immigration; housing rents;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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