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American Economic Journal: Economic Policy: Vol. 3 No. 2 (May 2011)

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Immigration and the Neighborhood

Article Citation

Saiz, Albert, and Susan Wachter. 2011. "Immigration and the Neighborhood." American Economic Journal: Economic Policy, 3(2): 169-88.

DOI: 10.1257/pol.3.2.169

Abstract

Within metropolitan areas, neighborhoods of growing immigrant settlement are becoming relatively less desirable to natives. We deploy a geographic diffusion model to instrument for the growth of immigrant density in a neighborhood. Our approach deals explicitly with potential unobservable shocks that may be correlated with proximity to immigrant enclaves. The evidence is consistent with a causal interpretation of an impact from growing immigrant density to native flight and relatively slower housing value appreciation. Further evidence indicates that these results are driven more by the demand for residential segregation based on ethnicity and education than by foreignness per se. (JEL I20, J11, J15, R23, Z13)

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Authors

Saiz, Albert (U PA)
Wachter, Susan (U PA)

JEL Classifications

I20: Education and Research Institutions: General
J11: Demographic Trends and Forecasts; General Migration
J15: Economics of Minorities and Races; Non-labor Discrimination
R23: Urban, Rural, and Regional Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Z13: Economic Sociology; Economic Anthropology; Social and Economic Stratification

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