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Don't stand so close to me: The urban impact of immigration

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  • Accetturo, Antonio
  • Manaresi, Francesco
  • Mocetti, Sauro
  • Olivieri, Elisabetta

Abstract

We examine the impact of immigration on segregation patterns and housing prices in urban areas. We develop a spatial equilibrium model that shows how the effect of an immigrant inflow in a district affects local housing prices through changes in how natives perceive the quality of their local amenities and how this influences their mobility. Predictions of the model are tested by using a novel dataset on housing prices and population variables at the district level for a sample of 20 large Italian cities. To address endogeneity problems, we adopt an instrumental variable strategy which uses historical enclaves of immigrants across districts to predict current settlements. We find that immigration raises average house prices at the city level, while it reduces price growth in the district affected by the inflow vis-à-vis the rest of the city. We provide evidence that this pattern is driven by native-flight from immigrant-dense districts towards other areas of the same city. These findings are consistent with a negative effect of immigrants on native's perceived local amenities.

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Bibliographic Info

Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 45 (2014)
Issue (Month): C ()
Pages: 45-56

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Handle: RePEc:eee:regeco:v:45:y:2014:i:c:p:45-56

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Web page: http://www.elsevier.com/locate/regec

Related research

Keywords: Migration; Housing; Spatial segregation;

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References

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  1. Bianchi, Milo & Buonanno, Paolo & Pinotti, Paolo, 2010. "Do Immigrants Cause Crime?," CEPREMAP Working Papers (Docweb) 1023, CEPREMAP.
  2. Moretti, Enrico, 2010. "Local Labor Markets," CEPR Discussion Papers 7818, C.E.P.R. Discussion Papers.
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  4. Mocetti, Sauro & Porello, Carmine, 2010. "How does immigration affect native internal mobility? New evidence from Italy," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 427-439, November.
  5. Saiz, Albert, 2007. "Immigration and housing rents in American cities," Journal of Urban Economics, Elsevier, vol. 61(2), pages 345-371, March.
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  8. Tito Boeri & Marta De Philippis & Eleonora Patacchini & Michele Pellizzari, 2014. "Immigration, Housing Discrimination and Employment," CReAM Discussion Paper Series 1414, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  9. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
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  12. Albert Saiz, 2003. "Room in the Kitchen for the Melting Pot: Immigration and Rental Prices," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 502-521, August.
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  14. Patrick Bayer & Robert McMillan & Kim Rueben, 2003. "What Drives Racial Segregation? New Evidence Using Census Microdata," Working Papers 859, Economic Growth Center, Yale University.
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  16. Cutler, David & Vigdor, Jacob & Glaeser, Edward, 1999. "The Rise and Decline of the American Ghetto," Scholarly Articles 2770033, Harvard University Department of Economics.
  17. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
  18. Harminder Battu & Yves Zenou, 2010. "Oppositional Identities and Employment for Ethnic Minorities: Evidence from England," Economic Journal, Royal Economic Society, vol. 120(542), pages F52-F71, 02.
  19. Libertad Gonzalez & Francesc Ortega, 2013. "Immigration And Housing Booms: Evidence From Spain," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 37-59, 02.
  20. Steven Stillman & David C. Maré, 2008. "Housing Markets and Migration: Evidence from New Zealand," Working Papers 08_06, Motu Economic and Public Policy Research.
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Cited by:
  1. Diaz-Serrano, Luis & Raya, Josep M., 2014. "Mortgages, immigrants and discrimination: An analysis of the interest rates in Spain," Regional Science and Urban Economics, Elsevier, vol. 45(C), pages 22-32.
  2. Christoph Basten & Cathérine Koch, 2014. "The causal effect of house prices on mortgage demand and mortgage supply," ECON - Working Papers 140, Department of Economics - University of Zurich.

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