Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/320126 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 11905
Publisher: 
CESifo GmbH, Munich
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: 
multiculturalism
house prices
homophily
segregation
JEL: 
D1
G5
R21
R31
Document Type: 
Working Paper
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