Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/319914 
Year of Publication: 
2025
Series/Report no.: 
IWH Discussion Papers No. 11/2025
Publisher: 
Halle Institute for Economic Research (IWH), Halle (Saale)
Abstract: 
Is there a multicultural neighborhood price premium? We exploit plausibly exogenous variation in British colonization patterns in Northern Ireland during the early 1600s which created neighborhoods of varying religious composition that persists until today. These religious groups are culturally distinct, but are observationally equivalent ethnically and socioeconomically. A standard deviation increase neighborhood-level multiculturalism raises house prices by 9.6%. Multiculturalism raises property prices by increasing asset liquidity and housing demand as a wider spectrum of society demand houses in these areas. The findings and mechanism contrast sharply with prior evidence showing negative relationships due to homophily, social networks, and identification challenges.
Subjects: 
homophily
house prices
multiculturalism
segregation
JEL: 
D1
G5
R21
R31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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