Working Paper: CEPR ID: DP14551
Authors: Martijn Dres; Hans Koster
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.
Keywords: immigration; house prices; refugee centers; household preferences
JEL Codes: E02; O18; R31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| refugee centers (RCs) (J68) | local house prices (R31) |
| increase in nationalist votes (F52) | housing prices (R31) |
| size of the RC (C59) | willingness to pay (WTP) for proximity to RCs (Q26) |
| foreign-born individuals (F22) | willingness to pay (WTP) for proximity to RCs (Q26) |
| refugee centers (RCs) (J68) | permanent disamenity effect on local house prices (R28) |
| refugee centers (RCs) (J68) | robustness in estimates (C51) |