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Neighborhood quality and opposition to immigration: Evidence from German refugee shelters

Jakob Hennig

Journal of Development Economics, 2021, vol. 150, issue C

Abstract: Does refugee immigration affect the quality of neighborhood amenities, and are these changes driving the opposition to immigration? In this paper, I use real estate listings and online reviews of local amenities to demonstrate neighborhood change due to the establishment of a refugee shelter. The setting is Berlin during the refugee immigration episode of 2015. I show that shelter locations did not differ from control locations in terms of neighborhood quality or political outcomes before 2015. After a shelter is established, rental prices decline 3–4% within 100m of the shelter, relative to untreated locations. Ratings for existing amenities also decline in the immediate vicinity. However, anti-immigrant right-wing parties do not receive a higher share of the vote in these areas, which demonstrates that neighborhood decline due to immigration does not drive the large aggregate surge in their support.

Keywords: Refugee migration; Real estate; Elections (search for similar items in EconPapers)
JEL-codes: D72 F22 J15 R23 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1016/j.jdeveco.2020.102604

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