The Economics of Immigration 2nd Edition by Cynthia Bansak

Exercise 2

Saiz (2007) finds that an influx of immigrants in a gateway U.S. city increases rental and house prices in that city. Choose what you believe to be a gateway city (why might it be a gateway city?) and find the median house price and immigrant share of the population. Then calculate the effect of an immigrant inflow equal to 1 percent of the population on house prices according to Saiz's results.