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Immigration and House Prices in the UK

Author

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  • Filipa Sá

Abstract

This article studies the effect of immigration on house prices in the UK. It finds that immigration has a negative effect on house prices and presents evidence that this negative effect is due to the mobility response of the native population. Natives respond to immigration by moving to different areas and those who leave are at the top of the wage distribution. This generates a negative income effect on housing demand and pushes down house prices. The negative effect of immigration on house prices is driven by local areas where immigrants have lower education.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Filipa Sá, 2015. "Immigration and House Prices in the UK," Economic Journal, Royal Economic Society, vol. 125(587), pages 1393-1424, September.
    • Handle: RePEc:wly:econjl:v:125:y:2015:i:587:p:1393-1424
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    File URL: http://hdl.handle.net/10.1111/ecoj.2015.125.issue-587
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    More about this item

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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