This paper examines how the income heterogeneity of immigrants affects local house price dynamics and neighborhood composition.

This paper examines how the income composition of immigrant inflows affects local house price growth in the Netherlands. Using administrative microdata from 2006 to 2020, we distinguish immigrants into four income groups and estimate their effects on property values and transaction-based house prices. To address potential endogeneity in residential location choices, we employ a shift-share instrumental variable strategy based on historical settlement patterns interacted with national immigration shocks by origin and income group. We find heterogeneity depending on immigrant income, geographic location, and the time horizon analyzed. In the short run, middle-low-income immigrant inflows increase annual property-value growth by approximately 0.17–0.20 percentage points, while low-income inflows reduce it by approximately 0.05–0.06 percentage points. These patterns appear primarily in less urban municipalities. Medium-run estimates suggest weaker subsequent property-value growth, consistent with residential adjustment. Native population responses vary across immigrant income groups, but the evidence does not establish native out-migration as the primary mechanism behind the estimated house price effects. Overall, the findings show that aggregate estimates can mask important differences in the local housing-price effects of immigration.

I test whether house prices and rents are related in the long and short run using a new quarterly dataset for 18 OECD countries from 1968 to 2021. If agents treat houses as assets, annual rents correspond to the yearly net present value of house expenses, a function of prices. It follows that house prices and rents should be positively related. I find evidence of cointegration in only half of countries using Johansen tests. I observe a negative response of rents to a positive shock in house prices. Two factors might explain these results: heterogeneity in house quality reducing dwellings' comparability, and rental sector size relieving demand pressure on rental prices.

This paper examines the labor market consequences of tax-based fiscal consolidation in Italy over the period 2006–2019. Exploiting municipality-level data on personal income tax declarations and labor market outcomes across 610 local labor markets (LLMs), combined with the narrative fiscal shock series of Alesina, Favero, and Giavazzi (2020), we estimate impulse response functions using local projections instrumented by a Bartik shift-share design. Our identification strategy leverages cross-sectional variation in pre-existing tax intensity interacted with nationally-determined consolidation shocks, isolating the causal effects of direct tax increases from endogenous responses to local business cycles. The results reveal a one-percentage-point increase in direct taxes raises unemployment and suppresses employment rates over a four-year horizon.