Does Unprecedented Mass Immigration Fuel Ethnic Discrimination? A Two-Wave Field Experiment in the German Housing Market

Literature suggests that sudden mass immigration can fuel xenophobic attitudes. However, there is a lack of reliable evidence on hostile actions, such as discrimination. In this study, we leverage the unexpected mass immigration of refugees to Germany in 2015 in combination with a two-wave field experiment to study the effect of immigration on ethnic discrimination. In 2015/2016, political and social tensions in the Middle East and North Africa led to a historic mass migration to European countries. We carried out a large-scale field experiment on ethnic housing market discrimination in Germany (paired e-mail correspondence test with ~5,000 e-mail applications to rental housing units in each wave) shortly before this "European refugee crisis" (1st wave). We repeated this experiment at the peak of the crisis (2nd wave of our experiment). By taking advantage of the unexpected refugee immigration between the two waves of our experiment and the quasi-random allocation of refugees across regions for causal identification, we find no credible evidence that the large influx of refugees changed the extent of ethnic discrimination of Turks in the rental housing market. This result holds regardless of the extent to which regions within Germany were already accustomed to immigration before the refugee crisis.