| By: | Balkan, Binnur (Central Bank of Turkey); 
Tok, Elif Ozcan (Central Bank of Turkey); 
Torun, Huzeyfe (Central Bank of Turkey); 
Tumen, Semih (TED University) | 
| 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: | C21 F22 R21 R23 | 
| Date: | 2018–06 | 
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11611&r=cwa |