Immigration and housing booms: Evidence from Spain

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González Luna, Libertad; Ortega, Francesc. Immigration and housing booms: Evidence from Spain. 2009
To cite or link this document: González Luna, Libertad Ortega, Francesc
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa 2009-07-01
dc.description.abstract We estimate empirically the effect of immigration on house prices and residential construction activity in Spain over the period 1998-2008. This decade is characterized by both a spectacular housing market boom and a stunning immigration wave. We exploit the variation in immigration across Spanish provinces and construct an instrument based on the historical location patterns of immigrants by country of origin. The evidence points to a sizeable causal effect of immigration on both prices and quantities in the housing market. Between 1998 and 2008, the average Spanish province received an immigrant inflow equal to 17% of the initial working-age population. We estimate that this inflow increased house prices by about 52% and is responsible for 37% of the total construction of new housing units during the period. These figures imply that immigration can account for roughly one third of the housing boom, both in terms of prices and new construction.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 1167
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.title Immigration and housing booms: Evidence from Spain
dc.type info:eu-repo/semantics/workingPaper 2014-06-03T07:14:24Z
dc.subject.keyword Labour, Public, Development and Health Economics
dc.subject.keyword housing market
dc.subject.keyword immigration
dc.subject.keyword house prices
dc.subject.keyword construction
dc.subject.keyword spain
dc.rights.accessRights info:eu-repo/semantics/openAccess

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