US Immigration Levels, Urban Housing Values, and Their Implications for Capital Share

11 Pages Posted: 20 Oct 2017

See all articles by Ryan Murphy

Ryan Murphy

Southern Methodist University (SMU)

Alex Nowrasteh

Cato Institute - Center for Global Liberty and Prosperity

Date Written: October 2017

Abstract

This article applies previously estimated effects of immigration on housing values to urban counties in the United States. Our findings here also help estimate how much of the increase in the net capital share of income since 1970 as observed by Piketty ([Piketty, T., 2014]) is caused by immigration. We find that in most urban counties in the United States, increased levels of immigration have had a modest but non‐negligible effect on the level of real estate prices and, per Rognlie ([Rognlie, M., 2015]), likely capital share. These estimates provide hard numbers for the public debate over immigration policy in the United States, with implications elsewhere as well.

Keywords: capital share, housing, immigration, Piketty, Rognlie

Suggested Citation

Murphy, Ryan and Nowrasteh, Alex, US Immigration Levels, Urban Housing Values, and Their Implications for Capital Share (October 2017). Economic Affairs, Vol. 37, Issue 3, pp. 411-421, 2017. Available at SSRN: https://ssrn.com/abstract=3055992 or http://dx.doi.org/10.1111/ecaf.12227

Ryan Murphy (Contact Author)

Southern Methodist University (SMU) ( email )

6212 Bishop Blvd.
Dallas, TX 75275
United States

Alex Nowrasteh

Cato Institute - Center for Global Liberty and Prosperity ( email )

1000 Massachusetts Avenue, N.W.
Washington, DC 20001-5403
United States

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