Integration and Migrants’ Economic Behaviours: Evidence from the Singapore Housing Market

Abstract

This study investigates impact of social integration on migrants’ economic behaviours from a new temporal perspective. We use Singapore’s unique differential public housing policies as a quasi-natural experiment, conducted a household survey on social integration among 1,128 migrants and local households living in public housing estates, and linked them with their nearest housing transaction records. In public open rental housing market, in which Singapore migrants in early post-migration years are permitted to reside, migrant renters select housing in areas up to 3.04% farther from their workplace with 1 more year of residency, physically and spatially making their way into the host society. Migrant renters also pay rents that are lower by up to 0.67% with 1 more year of post-migration residency. However, in public owner-occupied housing market, in which migrants are allowed to purchase their home after obtaining citizenship, there are no differences between local-born and converted-citizen homebuyers. Our results emphasize importance of integration policy at early stages of migration.

Keywords: Post-migration experience, social and spatial integration, housing behavior, rent, search and bargaining power

JEL Classification: J15, R21, R23