The Effect of Immigrants on Cities Housing Prices:A Decomposition Based on the Emigration of Local Residents
), Abstract
This paper uses a method to decompose the total effect of immigrants on cities housing prices into the direct demand effect and the derived demand effect which caused by local residents migration, and estimates the size of these two effects in explaining cities housing prices growth. Using 1% Population Survey of 2015 and 100 cities housing price data in China’s real estate index system, our empirical results show that the proportion of immigrants increases 1%, the urban housing price rises 0.59%, and the direct demand effect of immigrants can explain 73.9% of this total effect, the remaining 26.1% is explained by indirect effect of immigrants. Our results imply that immigrants promote cities housing prices not only by the direct demand effect, but also by indirect affect which influence the mobility of local residents, ignoring this indirect effect will underestimate the effect of immigrants on urban housing prices.
References
Chen Z, Lu M, Sato H. 2009. Who entered high-wage industries?The role of social network, Hukou and labor productivities[J]. Economic Research Journal, 44(10): 121-132. (in Chinese)
Gu S Z, Zheng C, Cao Y B. 2014. Strategic thinking on developing small and medium-sized cities to balance urbanization[J]. Population Research, 38(4): 19-26. (in Chinese)
Li J N, You W X, Sun P Y. 2017. Do migrants boost city's housing price?An empirical study based on China's city data[J]. Nankai Economic Studies, (1): 58-76. (in Chinese)
Li S. 1997. Labor mobility model in the process of China's economic transition[J]. Economic Research Journal, (1): 23-30, 80. (in Chinese)
Liu X J, Zhao Y H. 2009. The impact of labor migration on urban labor markets in China[J]. China Economic Quarterly, 8(2): 693-710. (in Chinese)
Lu M, Ou H H, Chen B K. 2014. Rationality or bubble: An empirical study on urbanization, immigration and housing prices[J]. Journal of World Economy, (1): 30-54. (in Chinese)
Qin D J. 2008. Taking the path of urbanization with Chinese characteristics to give full play to the role of small towns[J]. Studies on the Socialism with Chinese Characteristics, (1): 96-99. (in Chinese)
Qiu B X. 2003. Challenges faced by China in its rapid urbanization process in the near future[J]. Urban Studies, 10(6): 1-15. (in Chinese)
Xiao J C. 2009. The roadmap of urbanization with China's characteristics and problems of migrants farmers[J]. Development Research, (5): 18-21. (in Chinese)
Zhang L, He J, Ma R H. 2017. How housing price affects labor migration?[J]. Economic Research Journal, 52(8): 155-170. (in Chinese)
Zhu X G. 2000. Urbanization and analysis of the advantage and disadvantage of the construction of small cities and towns[J]. Journal of Socialist Theory Guide, (4): 29-32. (in Chinese)
Accetturo A, Manaresi F, Mocetti S, et al. 2014. Don't stand so close to me: The urban impact of immigration[J]. Regional Science and Urban Economics, 45: 45-56.
Akbari A H, Aydede Y. 2012. Effects of immigration on house prices in Canada[J]. Applied Economics, 44(13): 1645-1658.
Bartel A P. 1989. Where do the new U. S. immigrants live?[J]. Journal of Labor Economics, 7(4): 371-391.
Boustan L P, Fishback P V, Kantor S. 2010. The effect of internal migration on local labor markets: American cities during the great depression[J]. Journal of Labor Economics, 28(4): 719-746.
Boustan L P. 2010. Was postwar suburbanization “white flight”?Evidence from the black migration[J]. Quarterly Journal of Economics, 125(1): 417-443.
Card D. 2001. Immigrant inflows, native outflows, and the local labor market impacts of higher immigration[J]. Journal of Labor Economics, 19(1): 22-64.
Combes P P, Démurger S, Li S. 2015. Migration externalities in Chinese cities[J]. European Economic Review, 76: 152-167.
Degen K, Fischer A M. 2017. Immigration and Swiss house prices[J]. Swiss Journal of Economics and Statistics, 153(1): 15-36.
Fishback P V, Horrace W C, Kantor S. 2006. The impact of new deal expenditures on mobility during the great depression[J]. Explorations in Economic History, 43(2): 179-222.
Gonzalez L, Ortega F. 2013. Immigration and housing booms: Evidence from Spain[J]. Journal of Regional Science, 53(1): 37-59.
Gyourko J, Mayer C, Sinai T. 2013. Superstar cities[J]. American Economic Journal: Economic Policy, 5(4): 167-199.
Lee E S. 1966. A theory of migration[J]. Demography, 3(1): 47-57.
Ottaviano G I P, Peri G. 2006. The economic value of cultural diversity: Evidence from US cities[J]. Journal of Economic Geography, 6(1): 9-44.
Ottaviano G I P, Peri G. 2012. Rethinking the effect of immigration on wages[J]. Journal of the European Economic Association, 10(1): 152-197.
Peri G, Sparber C. 2011. Assessing inherent model bias: An application to native displacement in response to immigration[J]. Journal of Urban Economics, 69(1): 82-91.
Sá F. 2015. Immigration and house prices in the UK[J]. The Economic Journal, 125(587): 1393-1424.
Saiz A. 2003. Room in the kitchen for the melting pot: Immigration and rental prices[J]. The Review of Economics and Statistics, 85(3): 502-521.
Saiz A. 2007. Immigration and housing rents in American cities[J]. Journal of Urban Economics, 61(2): 345-371.
Saiz A, Wachter S. 2011. Immigration and the neighborhood[J]. American Economic Journal: Economic Policy, 3(2): 169-188.
Sharpe J. 2019. Re-evaluating the impact of immigration on the U. S. rental housing market[J]. Journal of Urban Economics, 111: 14-34.
京公网安备11010802044758号