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Rival guests or defiant hosts? The local economic impact of hosting refugees

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Listed:
  • Cyprien Batut

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Sarah Schneider-Strawczynski

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

This article investigates the local economic cost of hosting refugees. Using administrative data in France, we show that the opening of small housing centers for refugees decreases the economic activity in hosting municipalities. We demonstrate that this downturn is related to a decline in the population by around 2% due to fewer people moving to hosting municipalities. We show that this avoidance behavior of natives results from prejudices, and is unlikely to be driven by a labor market supply shock from the arrival of refugees. We also estimate the aggregate cost of hosting refugees.

Suggested Citation

  • Cyprien Batut & Sarah Schneider-Strawczynski, 2022. "Rival guests or defiant hosts? The local economic impact of hosting refugees," PSE-Ecole d'économie de Paris (Postprint) hal-04465590, HAL.
    • Handle: RePEc:hal:pseptp:hal-04465590
    DOI: 10.1093/jeg/lbab014
    as

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