The economic effect of the 2015 Refugee Crisis in Sweden: Jobs, Crimes, Prices and Voter turnout
The civil war in Syria has culminated in a massive refugee crisis in neighboring and Europeancountries. Millions of refugees made their way to Europe between 2014 and 2015, with morethan 160 000 arriving in Sweden alone. Little is known about the impact of this influx onvoting behavior, criminality rates, labor markets, and local price levels. By using data on theSwedish municipalities, the analysis estimates the short-run consequences of the refugeeinflow. The results are found through a dynamic difference-in-difference estimator, whichcompare municipalities in Sweden who received relatively many refugees (treated) comparedto those hosting relatively few refugees (control). The quasi-randomized allocation process ofrefugees in combination with a very high variation among the different municipalitiesrefugee-intake creates stable conditions for reliable estimations through the difference-indifferenceapproach. Regarding the labor market, the findings suggest that the treated groupshosting many refugees face higher unemployment rates and simultaneously lower wagelevels. Additionally, the result indicates that the municipalities hosting more refugees facehigher crimes committed per capita, particularly regarding assault- and fraud-related crimes.Furthermore, the results stress that the treated group meet higher vote shares in thesubsequent national election in favor of the right-wing parties and decreasing support for thecenter-right, center-left, and left-wing parties. Surprisingly, the vote share of the antiimmigrationparty SD does not correlate with refugee-influx.