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)
Saiz, Albert, and Susan Wachter.
"Immigration and the Neighborhood."
American Economic Journal: Economic Policy,
Education and Research Institutions: General
Demographic Trends and Forecasts; General Migration
Economics of Minorities and Races; Non-labor Discrimination
Urban, Rural, and Regional Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Economic Sociology; Economic Anthropology; Social and Economic Stratification