Droes, M. and Koster, H. (2023). A world divided: refugee centers, house prices and household preferences Journal of Economic Geography, 23(1):51–90.
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Affiliated author
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Publication year2023
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JournalJournal of Economic Geography
Using detailed housing transactions data from the Netherlands covering 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 5.8%. The effect has become stronger in the past decade, in line with an increasing share of nationalist votes. Using micro-data on home buyers{\textquoteright} characteristics, we further identify households{\textquoteright} preferences. The results show that the willingness to pay is more negative for larger RCs and more positive for foreign-born individuals. The latter is indicative of a more positive attitude of foreign-born individuals toward refugees.