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Title: A World Divided: Refugee Centers, House Prices, and Household Preferences

Author(s): Martijn Dröes and Hans R.A. Koster

Publication Date: April 2020

Keyword(s): House Prices, household preferences, Immigration and refugee centers

Programme Area(s): International Trade and Regional Economics

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.

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Bibliographic Reference

Dröes, M and Koster, H. 2020. 'A World Divided: Refugee Centers, House Prices, and Household Preferences'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=14551