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Discrimination and sorting in the real estate market: Evidence from terrorist attacks and mosques

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  • Lepage, Louis-Pierre

Abstract

I evaluate the impact of Islamist terrorist attacks, taken as exogenous shocks which may change individual perceptions towards Middle Easterners and Muslims, on the real-estate market. Using detailed property-level transactions data, I find that US property prices immediately near mosques fell by 5% in the two years following 9/11. I find little evidence of changes in the number of transactions, but an increase of up to 30% in the fraction of Middle Eastern and North African households locating near mosques, indicating increased ethnic and religious sorting from 9/11. Additional evidence suggests that price decreases across areas are in line with increased prejudice.

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  • Lepage, Louis-Pierre, 2023. "Discrimination and sorting in the real estate market: Evidence from terrorist attacks and mosques," European Economic Review, Elsevier, vol. 153(C).
    • Handle: RePEc:eee:eecrev:v:153:y:2023:i:c:s0014292123000156
    DOI: 10.1016/j.euroecorev.2023.104386
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    1. Lehrer, Steven & Lepage, Louis-Pierre & Sousa Pereira, Nuno, 2024. "Breaking Barriers: The Impact of Employer Exposure to Immigrants," Working Paper Series 2/2024, Stockholm University, Swedish Institute for Social Research.

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