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The Deterrent Effect of an Anti-Minaret Vote on Foreigners' Location Choices

Author

Listed:
  • Slotwinski, Michaela

    () (University of Basel)

  • Stutzer, Alois

    () (University of Basel)

Abstract

In a national ballot in 2009, Swiss citizens surprisingly approved an amendment to the Swiss constitution to ban the further construction of minarets. The ballot outcome manifested reservations and anti-immigrant attitudes in regions of Switzerland which had previously been hidden. We exploit this fact as a natural experiment to identify the causal effect of negative attitudes towards immigrants on foreigners' location choices and thus indirectly on their utility. Based on a regression discontinuity design with unknown discontinuity points and administrative data on the population of foreigners, we find that the probability of their moving to a municipality which unexpectedly expressed stronger reservations decreases initially by about 40 percent. The effect is accompanied by a drop of housing prices in these municipalities and levels off over a period of about 5 months. Moreover, foreigners in high-skill occupations react relatively more strongly highlighting a tension when countries try to attract well-educated professionals from abroad.

Suggested Citation

  • Slotwinski, Michaela & Stutzer, Alois, 2019. "The Deterrent Effect of an Anti-Minaret Vote on Foreigners' Location Choices," Working papers 2018/28, Faculty of Business and Economics - University of Basel.
  • Handle: RePEc:bsl:wpaper:2018/28
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    More about this item

    Keywords

    attitudes; foreigners; location choice; popular initiative; regression discontinuity design;

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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