This study investigates the effects of immigration on residential land prices in urban Tokyo. A rapid increase in immigrants in Tokyo raises the concern that immigration may depreciate land prices because of the negative image emerging from the perception that some immigrants might create disharmony in society. However, our analysis denies this possibility; for every 1% increase in immigrant ratio (i.e., the proportion of immigrants in the total population), the residential land prices increase by 12%. Although the literature explains that a negative immigration effect occurs when the analysis uses small geographic units, the results suggest that even a positive effect can occur under small geographic units. The implications of the current results are complicated. While the concern of immigration-induced land price depreciation is unfounded, this raises another concern—that of asset inequality between land owners and tenants.
Funding source: Japan Society for the Promotion of Science
Award Identifier / Grant number: 16K03650
Award Identifier / Grant number: 21K01506
I appreciate Yuchen Lu for his research assistance and Editage (www.editage.com) for helping with English language editing.
Research funding: This work was supported by the Japan Society for the Promotion of Science under Grants-in-Aid for Scientific Research (No. 16K03650; 21K01506).
Fixed effect model under the standard least squares approach
|Crime per capita||−8.455***|
|Local tax liability per capita||0.147|
|Number of observations||207|
***Statistically significant at 1% level.
Accetturo, A., F. Manaresi, S. Mocetti, and E. Olivieri. 2014. “Don’t Stand So Close to Me: The Urban Impact of Immigration.” Regional Science and Urban Economics 45: 45–56. https://doi.org/10.1016/j.regsciurbeco.2014.01.001.Search in Google Scholar
Barone, G., A. D’Ignazio, G. De Blasio, and P. Naticchinoni. 2016. “The Role of Immigration in Shaping Natives’ Voting Behavior.” Journal of Public Economics 136: 1–13. https://doi.org/10.1016/j.jpubeco.2016.03.002.Search in Google Scholar
Borjas, G. J. 2003. “The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market.” Quarterly Journal of Economics 118 (4): 1335–74. https://doi.org/10.1162/003355303322552810.Search in Google Scholar
Borjas, G. J. 2006. “Native Internal Migration and the Labor Market Imperfect of Immigration.” Journal of Human Resources 41 (2): 221–58. https://doi.org/10.3368/jhr.xli.2.221.Search in Google Scholar
Card, D. 2001. “Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration.” Journal of Labor Economics 19 (1): 22–64. https://doi.org/10.1086/209979.Search in Google Scholar
Drukker, D. M., H. Peng, I. R. Prucha, and R. Raciborski. 2013. “Creating and Managing Spatial-Weighting Matrices with the Spmat Command.” STATA Journal 13 (2): 242–86. https://doi.org/10.1177/1536867x1301300202.Search in Google Scholar
Furtado, D., and H. Hock. 2010. “Low Skilled Immigration and Work-Fertility Tradeoffs Among High Skilled US Natives.” The American Economic Review 100 (2): 224–8. https://doi.org/10.1257/aer.100.2.224.Search in Google Scholar
Harrison, D.Jr., and D. L. Rubinfeld. 1978. “Hedonic Housing Prices and the Demand for Clean Air.” Journal of Environmental Economics and Management 5: 81–102. https://doi.org/10.1016/0095-0696(78)90006-2.Search in Google Scholar
Hussain, A., I. A. Munn, J. Brashier, W. D. Jones, and J. E. Henderson. 2013. “Capitalization of Hunting Lease Income into Northern Mississippi Forestland Values.” Land Economics 89 (1): 137–53. https://doi.org/10.3368/le.89.1.137.Search in Google Scholar
Knoll, K., M. Schularick, and T. Steger. 2017. “No Price like Home: Global House Prices, 1870-2012.” The American Economic Review 107 (2): 331–53. https://doi.org/10.1257/aer.20150501.Search in Google Scholar
Levi, E., R. D. Mariani, and F. Patriarca. 2020. “Hate at First Sight? Dynamic Aspects of the Electoral Impact of Migration: the Case of Ukip.” Journal of Population Economics 33: 1–32. https://doi.org/10.1007/s00148-019-00746-5.Search in Google Scholar
Möller, J. 2009. “Regional Variations in the Price of Building Land: A Spatial Econometrics Approach for West Germany.” The Annals of Regional Science 43: 113–32.10.1007/s00168-007-0207-6Search in Google Scholar
Ottaviano, G. I. P., and G. Peri. 2006. “The Economic Value of Cultural Diversity: Evidence from US Cities.” Journal of Economic Geography 6: 9–44. https://doi.org/10.1093/jeg/lbi002.Search in Google Scholar
Ottaviano, G. I. P., G. Peri, and G. Wright. 2013. “Immigration, Offshoring, and American Jobs.” The American Economic Review 103 (5): 1925. https://doi.org/10.1257/aer.103.5.1925.Search in Google Scholar
Peri, G. 2012. “The Effect of Immigration on Productivity: Evidence from U.S. States.” The Review of Economics and Statistics 94 (1): 348–58. https://doi.org/10.1162/rest_a_00137.Search in Google Scholar
Saiz, A. 2003. “Room in the Kitchen for the Melting Pot: Immigration and Rental Prices.” The Review of Economics and Statistics 85 (3): 502–21. https://doi.org/10.1162/003465303322369687.Search in Google Scholar
© 2021 Walter de Gruyter GmbH, Berlin/Boston