Immigration and housing rents in Switzerland: Identification in a shift-share research design

Dario Fauceglia () and Tilman Slembeck ()
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Tilman Slembeck: Zurich University of Applied Sciences and University of St.Gallen

Economics Bulletin, 2021, vol. 41, issue 4, 2561-2573

Abstract: Drawing on geo-coded property data, we exploit aggregate immigration shocks in a shift-share instrument as the identifying quasi-random variation - conditional on control variables and fixed effects - to estimate the elasticity of residential housing rents to local immigration in Switzerland. In our balanced sample of municipalities the estimated average elasticity ranges between 2.40 and 2.98. Interestingly, exposure-robust inference, which avoids potentially downward biased standard errors in shift-share regressions as shown by Adao et al. (2019) (AKM), does not systematically decrease the precision of the estimated immigration effect in our application. However, these exposure-robust standard errors reveal that the elasticity of housing rents to immigration does not statistically differ from unity across specifications at the 5% significance level.

Keywords: bartik; shift-share instrument; immigration; housing rents (search for similar items in EconPapers)
JEL-codes: J6 R3 (search for similar items in EconPapers)
Date: 2021-12-29
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