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Rival guests or defiant hosts? The local economic impact of hosting refugees
[Ethnic segregation, tipping behavior, and native residential mobility]

Author

Listed:
  • Cyprien Batut
  • Sarah Schneider-Strawczynski

Abstract

This article investigates the local economic cost of hosting refugees. Using administrative data in France, we show that the opening of small housing centers for refugees decreases the economic activity in hosting municipalities. We demonstrate that this downturn is related to a decline in the population by around 2% due to fewer people moving to hosting municipalities. We show that this avoidance behavior of natives results from prejudices, and is unlikely to be driven by a labor market supply shock from the arrival of refugees. We also estimate the aggregate cost of hosting refugees.

Suggested Citation

  • Cyprien Batut & Sarah Schneider-Strawczynski, 2022. "Rival guests or defiant hosts? The local economic impact of hosting refugees [Ethnic segregation, tipping behavior, and native residential mobility]," Journal of Economic Geography, Oxford University Press, vol. 22(2), pages 327-350.
    • Handle: RePEc:oup:jecgeo:v:22:y:2022:i:2:p:327-350.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbab014
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    Citations

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    Cited by:

    1. Gamalerio, Matteo & Luca, Mario & Romarri, Alessio & Viskanic, Max, 2023. "Refugee reception, extreme-right voting, and compositional amenities: Evidence from Italian municipalities," Regional Science and Urban Economics, Elsevier, vol. 100(C).
    2. Fremerey, Melinda & Hörnig, Lukas & Schaffner, Sandra, 2024. "Becoming neighbors with refugees and voting for the far-right? The impact of refugee inflows at the small-scale level," Labour Economics, Elsevier, vol. 86(C).
    3. Matteo Gamalerio & Margherita Negri, 2023. "Not welcome anymore: the effect of electoral incentives on the reception of refugees," Review of Finance, European Finance Association, vol. 23(4), pages 901-920.
    4. Zuchowski, David, 2023. "Migration response to an immigration shock: Evidence from Russia's aggression against Ukraine," Ruhr Economic Papers 1039, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Matteo Gamalerio & Margherita Negri, 2023. "Not welcome anymore: the effect of electoral incentives on the reception of refugees," Journal of Economic Geography, Oxford University Press, vol. 23(4), pages 901-920.

    More about this item

    Keywords

    Migration; segregation; refugees; amenity shock;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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