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Neighborhood quality and opposition to immigration: Evidence from German refugee shelters

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  • Hennig, Jakob

Abstract

Does refugee immigration affect the quality of neighborhood amenities, and are these changes driving the opposition to immigration? In this paper, I use real estate listings and online reviews of local amenities to demonstrate neighborhood change due to the establishment of a refugee shelter. The setting is Berlin during the refugee immigration episode of 2015. I show that shelter locations did not differ from control locations in terms of neighborhood quality or political outcomes before 2015. After a shelter is established, rental prices decline 3–4% within 100m of the shelter, relative to untreated locations. Ratings for existing amenities also decline in the immediate vicinity. However, anti-immigrant right-wing parties do not receive a higher share of the vote in these areas, which demonstrates that neighborhood decline due to immigration does not drive the large aggregate surge in their support.

Suggested Citation

  • Hennig, Jakob, 2021. "Neighborhood quality and opposition to immigration: Evidence from German refugee shelters," Journal of Development Economics, Elsevier, vol. 150(C).
  • Handle: RePEc:eee:deveco:v:150:y:2021:i:c:s0304387820301796
    DOI: 10.1016/j.jdeveco.2020.102604
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    More about this item

    Keywords

    Refugee migration; Real estate; Elections;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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