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Dario Fauceglia and Tilman Slembeck
''Immigration and housing rents in Switzerland: Identification in a shift-share research design''
( 2021, Vol. 41 No.4 )
Drawing on geo-coded property data, we exploit aggregate immigration shocks in a shift-share instrument as the identifying quasi-random variation - conditional on control variables and fixed effects - to estimate the elasticity of residential housing rents to local immigration in Switzerland. In our balanced sample of municipalities the estimated average elasticity ranges between 2.40 and 2.98. Interestingly, exposure-robust inference, which avoids potentially downward biased standard errors in shift-share regressions as shown by Adao et al. (2019) (AKM), does not systematically decrease the precision of the estimated immigration effect in our application. However, these exposure-robust standard errors reveal that the elasticity of housing rents to immigration does not statistically differ from unity across specifications at the 5% significance level.
Keywords: bartik, shift-share instrument, immigration, housing rents
JEL: R3 - Production Analysis and Firm Location: General
J6 - Mobility, Unemployment, and Vacancies: General
Manuscript Received : Apr 12 2021 Manuscript Accepted : Dec 29 2021

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