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A world divided: refugee centers, house prices and household preferences

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  • Martijn I Dröes
  • Hans R A Koster

Abstract

Using detailed housing transactions data from the Netherlands covering more than two decades, we examine the disamenity effect associated with the opening of refugee centers (RCs). We show that the opening of an RC decreases local house prices by 5.8%. The effect has become stronger in the past decade, in line with an increasing share of nationalist votes. Using micro-data on home buyers’ characteristics, we further identify households’ preferences. The results show that the willingness to pay is more negative for larger RCs and more positive for foreign-born individuals. The latter is indicative of a more positive attitude of foreign-born individuals toward refugees.

Suggested Citation

  • Martijn I Dröes & Hans R A Koster, 2023. "A world divided: refugee centers, house prices and household preferences," Journal of Economic Geography, Oxford University Press, vol. 23(1), pages 51-90.
    • Handle: RePEc:oup:jecgeo:v:23:y:2023:i:1:p:51-90.
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    Cited by:

    1. Campo, Francesco & Giunti, Sara & Mendola, Mariapia, 2024. "Refugee crisis and right-wing populism: Evidence from the Italian Dispersal Policy," European Economic Review, Elsevier, vol. 168(C).
    2. Lucie Coufalová & Fanny Dellinger & Peter Huber & Stepan Mikula, 2024. "Borders and Population Growth: Evidence from a Century of Border Regime Changes on the Austrian-Czech Border," WIFO Working Papers 680, WIFO.
    3. Francesco Campo & Sara Giunti & Mariapia Mendola, 2020. "The Political Impact of Refugee Migration: Evidence from the Italian Dispersal Policy," Working Papers 456, University of Milano-Bicocca, Department of Economics.

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    More about this item

    Keywords

    House prices; refugee centers; attitudes; externalities;
    All these keywords.

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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