Immigration and Housing Rents : Evidence from German Reunification / by Kathleen Kürschner.

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Immigration and Housing Rents : Evidence from German Reunification / by Kathleen Kürschner.

1st ed. 2016.

9783658120610
3658120614
9783658120603
3658120606

Wiesbaden : Springer Fachmedien Wiesbaden : Imprint : Springer Gabler, [2016]

©2016

English

1 online resource (xvi, 115 pages) : illustrations.

10.1007/978-3-658-12061-0 doi

HD4801-8943

331

This work exploits the natural experiment provided by the unexpected disintegration of socialist East Germany to study the impact of the mass immigration of East Germans on housing rents in West German metropolitan areas. Using a spatial correlation approach, annual district-level migration data for 1991 and 1992 and unique rental price indicators from Germany's major regional property market information system, Kathleen Kürschner finds strong evidence for a positive and sizeable effect of immigration on rental prices of residential housing. Additional explorations that employ an IV approach based on various exogenous origin-region push factors related to the deteriorating economic conditions in East Germany yield estimates of even larger magnitude. These results suggest that immigration has important economic effects outside the labour market, traditionally the prime domain of economic enquiries into the consequences of immigration. The author's findings cast doubt on the appropriateness of this bias in focus.

Includes bibliographical references.

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