Rival Guests or Defiant Hosts? The Local Economic Impact of Hosting Refugees * Cyprien Batut † , Sarah Schneider-Strawczynski ‡ July 2020 Abstract This paper investigates the local economic cost of hosting refugees. Using ad- ministrative data in France, we show that the opening of small housing centers for refugees decreases economic activity in hosting municipalities. We demonstrate that this downturn is related to a decline in the population by around two percent due to fewer people moving into hosting municipalities. This avoidance behavior of natives results from prejudices since refugee inflows are not sufficient to generate labor market shocks. We also estimate the aggregate cost of hosting refugees. JEL: F22, R23, J61 Keywords: Migration, Segregation, Refugees, Amenity Shock * Contact : cyprien.batut[at]gmail.com. We would like to thank Eve Caroli, Julien Grenet, Eric Maurin, Thomas Piketty, Hillel Rapoport, Alesandro Tondini, Liam Wren-Lewis, and seminars participants for their advice and comments on earlier versions of this work. † Chaire Travail, Paris School of Economics ‡ Paris 1 Panthéon-Sorbonne University, Paris School of Economics 1
Rival Guests or Defiant Hosts? The Local Economic Impact of Hosting Refugees
Jul 11, 2023
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