Neighborhoods, Perceived Immigration, and Preferences for Redistribution: Evidence from Barcelona

Abstract

I use registry data and an original survey recording exact addresses to study the effects of neighborhood immigration on perceptions and preferences for redistribution in Barcelona. Natives' quasi-random exposure to immigration inflows in their immediate local environments influences their perceptions and preferences for redistribution in a way that critically depends on immigrants' origin. Immigrants from genetically close countries reduce natives' perceived number of immigrants in the country and (especially) neighborhood. Immigrants from religious-distant (predominantly Muslim) countries reduce natives' demand for redistribution, and increase their support for the extreme-right party when immigrant inflows are sizeable. Results suggest that income differences also matter for redistribution preferences, but less than religious distance. Low-educated and right-leaning natives are the primary drivers of the effects on demand for redistribution and perceptions, respectively. This work suggests that individuals extrapolate from their immediate local environments when forming their beliefs and preferences and highlights additional implications of residential segregation.

Keywords: Neighborhood Characteristics, Migration, Redistribution

JEL Classification: R23, O15, D31