Discrimination and sorting in the real estate market : Evidence from terrorist attacks and mosques

• I evaluate the impact of Islamist terrorist attacks, taken as exogenous shocks which may change individual perceptions towards Middle Easterners and Muslims, on the real-estate market. Using detailed property-level transactions data, I find that US property prices immediately near mosques fell by 5% in the two years following 9/11. I find little evidence of changes in the number of transactions, but an increase of up to 30% in the fraction of Middle Eastern and North African households locating near mosques, indicating increased ethnic and religious sorting from 9/11. Additional evidence suggests that price decreases across areas are in line with increased prejudice.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

SAMHÄLLSVETENSKAP  -- Sociologi -- Sociologi (hsv//swe)

SOCIAL SCIENCES  -- Sociology -- Sociology (hsv//eng)

Keyword

Housing market

Terrorism

Household sorting

Discrimination

Publication and Content Type

ref (subject category)

art (subject category)