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

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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… Click to show full abstract

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; opposition immigration; neighborhood quality; immigration

Journal Title: Journal of Development Economics
Year Published: 2021

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