Unexpected Guests: The Impact of Internal Displacement Inflows on Rental Prices in Colombian Host Cities
Emilio Depetris-Chauvin; Rafael Santos
Journal of Development Economics, forthcoming
Abstract: We study the causal impact of internally displaced people (IDP) inflows on rental prices in Colombian host cities. Following an instrumental variables approach we nd that as IDP inflows increase, low-income rental prices increase and high-income rental prices decrease. We provide empirical evidence on two potential mechanisms for these findings: Excess demand for low-income housing puts upwards pressure on rental prices; increasing supply of high-income housing coupled with rising
homicide rates put downwards pressure on rental prices.
JEL: J1, O15, R23, R31
Keywords: Internal Displaced People, Migration, Crime,Rental Prices