Abstract
In consumer cities, the presence and location of immigrants impacts house prices through two channels, which both can be valued positively as well as negatively: (i) their presence and contribution to population diversity and (ii) the creation of immigrant-induced consumer amenities like those associated with ethnic restaurants in terms of both their quantity as well as diversity. We hypothesize that these two mechanisms create a trade-off in which city dwellers want to live apart yet consume together. We use unique microdata of house prices and ethnic restaurants in the city of Amsterdam over the 1996-2011 period and a generalized propensity score (GPS) matching technique for multiple continuous treatments to estimate the trade-off between consumers' love for ethnic goods and their variety on the one hand, and ethnic residential composition on the other hand. We find evidence for the existence of such a trade-off: proximity to ethnically diverse restaurants indeed compensates for a negative correlation between the presence of immigrants and house prices. This trade-off mostly holds for neighborhoods featuring both a diverse population and a high level of amenities in terms of restaurants.
Original language | English |
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Article number | 23998083221082112 |
Pages (from-to) | 2267-2282 |
Number of pages | 16 |
Journal | Environment and Planning B: Urban Analytics and City Science |
Volume | 49 |
Issue number | 8 |
Early online date | 8 Apr 2022 |
DOIs | |
Publication status | Published - Oct 2022 |
JEL classifications
- d12 - Consumer Economics: Empirical Analysis
- d62 - Externalities
- j15 - "Economics of Minorities, Races, and Immigrants; Non-labor Discrimination"
- r10 - General Regional Economics (includes Regional Data)
Keywords
- amenities
- diversity
- immigrants
- hedonic pricing
- propensity score matching
- CULTURAL-DIVERSITY
- SEGREGATION
- NEIGHBORHOODS
- PRODUCTIVITY
- MARKET