Discrimination and Sorting in the Real Estate Market: Evidence from Terror Attacks and Mosques

Louis-Pierre Lepage ()
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Louis-Pierre Lepage: Swedish Institute for Social Research, Stockholm University, Postal: SOFI, Stockholm University, SE-106 91 Stockholm, Sweden

No 9/2023, Working Paper Series from Stockholm University, Swedish Institute for Social Research

Abstract: I evaluate the impact of Islamist terrorist attacks, taken as exogenous shocks which may change individual perceptions towards Middle Easterners and Muslims, on the real-estate market. Using detailed property-level transactions data, I find that US property prices immediately near mosques fell by 5% in the two years following 9/11. I find little evidence of changes in the number of transactions, but an increase of up to 30% in the fraction of Middle Eastern and North African households locating near mosques, indicating increased ethnic and religious sorting from 9/11. Additional evidence suggests that price decreases across areas are in line with increased prejudice.

Keywords: housing market; terrorism; household sorting; discrimination (search for similar items in EconPapers)
JEL-codes: J15 R30 (search for similar items in EconPapers)
Pages: 63 pages
Date: 2024-04-30
New Economics Papers: this item is included in nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:sofiwp:2023_009

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