Immigration, Housing Rents, and Residential Segregation: Evidence from Syrian Refugees in Turkey

37 Pages Posted: 2 Jul 2018

See all articles by Binnur Balkan

Binnur Balkan

Stockholm School of Economics; Government of the Republic of Turkey - Central Bank of the Republic of Turkey

Elif Tok

Government of the Republic of Turkey - Central Bank of the Republic of Turkey

Huzeyfe Torun

Government of the Republic of Turkey - Central Bank of the Republic of Turkey

Semih Tumen

TED University; IZA Institute of Labor Economics

Abstract

The massive inflow of Syrian refugees is argued to drastically affect various social and economic outcomes in the hosting countries and regions. In this paper, we use micro-level data to investigate whether the Syrian refugee inflows have affected the market for housing rentals in Turkey. The unexpected arrival of a large number of refugees due to civil conflict in Syria is used to construct a quasi-experimental design. Since the construction of new housing units takes a long time, refugee inflow resembles a positive demand shock to the sector.We find that the refugee inflows have led to an increase in the rents of higher-quality housing units, while there is no statistically significant effect in the rents of lower-quality units. This finding supports a residential segregation story, which suggests that the refugee wave has increased the demand for native-dominant neighborhoods with better amenities especially among natives. We argue that negative attitudes towards refugees – potentially due to refugee-native conflict along several dimensions – may be generating this result.

Keywords: Syrian refugees, immigration, housing rents, quasi-experimental design, Turkey

JEL Classification: C21, F22, R21, R23

Suggested Citation

Balkan, Binnur and Tok, Elif and Torun, Huzeyfe and Tumen, Semih, Immigration, Housing Rents, and Residential Segregation: Evidence from Syrian Refugees in Turkey. IZA Discussion Paper No. 11611, Available at SSRN: https://ssrn.com/abstract=3205899

Binnur Balkan (Contact Author)

Stockholm School of Economics ( email )

P.O. Box 6501
Sveavagen 65
S-113 83 Stockholm
Sweden

Government of the Republic of Turkey - Central Bank of the Republic of Turkey ( email )

Istiklal Cad. 10 Ulus
06100 Ankara, Ankara 06050
Turkey

Elif Tok

Government of the Republic of Turkey - Central Bank of the Republic of Turkey ( email )

Istiklal Cad. 10 Ulus
06100 Ankara, Ankara 06050
Turkey

Huzeyfe Torun

Government of the Republic of Turkey - Central Bank of the Republic of Turkey ( email )

Istiklal Cad. 10 Ulus
06100 Ankara, Ankara 06050
Turkey

Semih Tumen

TED University ( email )

Ziya Gokalp Bulvari No: 48
Kolej Çankaya, Ankara 06420
Turkey

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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