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A World Divided: Refugee Centers, House Prices, and Household Preferences

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  • Koster, Hans
  • Dröes, Martijn

Abstract

Using detailed Dutch housing transactions data for over 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 3-6%. The effect has become stronger in the past decade, in line with an increasing share of nationalist votes. Furthermore, by using micro-data on home buyers' characteristics and estimating non-parametric hedonic price models, we identify households' preferences. The results show that the willingness to pay (WTP) is more negative for larger RCs. The WTP of foreign-born individuals is more positive, which is indicative of a more positive attitude towards refugees.

Suggested Citation

  • Koster, Hans & Dröes, Martijn, 2020. "A World Divided: Refugee Centers, House Prices, and Household Preferences," CEPR Discussion Papers 14551, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:14551
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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 H. Dellinger & Peter Huber & Štěpán Mikula, 2024. "Borders and Population Growth: Evidence from a Century of Border Regime Changes on the Austrian-Czech Border," MUNI ECON Working Papers 2024-03, Masaryk University.
    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

    Immigration; House prices; Refugee centers; Household preferences;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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