Hate-Crime, Refugees, and local Tax Revenues

Hate-Crime, Refugees, and local Tax Revenues

Period: 01.04.2021 – 30.09.2022

In this project, we aim to examine the economic consequences of anti-foreigner hate crime in the wake of the large influx of asylum seekers to Germany in 2014 and 2015. Political motivated crime reduce a municipality’s attractiveness in various dimensions. Firms might move away or even start their business elsewhere in the first place. Not only firms might respond to hate crime but also customers or individuals in general. Individuals might base their location decision on the relative attractiveness of municipalities, affecting the housing market and hence, also property tax revenue. These distortions lead to a reduction in generated tax revenues and/or a deterioration of public goods. To analyze heterogeneous effects, we explicitly test if and by how much certain industries (e.g. tourism sector) are affected. In 2015 alone, 890.000 people filed for asylum in Germany. At the same time, the German police registered 923 criminal attacks against asylum seekers and their accommodations, an increase by 400% compared to 2014 (Entorf and Lange, 2017). While hate crime receives significant media attention (Ivandic et al., 2019), little is known about the economic consequences. We aim to fill that void in the literature and provide important insights for research and policy makers.

Project members

Martin Streng

Martin Streng

Researcher und Graduate Study Coordinator

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Carina Neisser

Carina Neisser

Junior Research Associate

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