Abstract

This paper analyzes the effects of a direct exposure to forced migrants in the local context on the subjective well-being of the native population in Germany. The empirical analysis covers a period from 2013 to 2019 and integrates administrative data on asylum seekers at the county level with individual-level survey data derived from the German Socio-Economic Panel (SOEP). We apply a shift-share IV strategy based on the social network of forced migrants and a hypothetical allocation quota to identify the causal effect. Our results suggest that the inflow of forced migration decreases concerns about immigration. However, there is no evidence of a significant effect on life satisfaction or worries about xenophobia. Furthermore, we provide evidence on heterogeneous effects with respect to characteristics of the individual.