Price and Prejudice: Housing Rents Reveal Racial Animus

Brülhart, Marius, Gian-Paolo Klinke, Andrea Marcucci, Dominic Rohner and Mathias Thoenig
Authors registered in the RePEc Author Service: Marius Brülhart

No 18050, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We study market rents in the neighborhood of asylum seeker hosting centers. Our empirical setting exploits the quasi-random opening of centers and spatial allocation of asylum seekers in Switzerland. Rents within 0.7km of an active center are found on average to be 3.8% lower than rents in the control group. The price drop is more pronounced when centers host a higher share of asylum seekers from Sub-Saharan countries. In contrast, neither the religious affiliation of asylum seekers nor their inferred crime propensity affect prices significantly. Our findings are consistent with racial animus as the dominant driver of observed market outcomes

JEL-codes: J15 R31 (search for similar items in EconPapers)
Date: 2023-04
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Working Paper: Price and Prejudice: Housing Rents Reveal Racial Animus (2023)
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