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2026 (English)In: Regional Science and Urban Economics, ISSN 0166-0462, E-ISSN 1879-2308, Vol. 118, article id 104191Article in journal (Refereed) Published
Abstract [en]
Place-based policies that allocate resources to specific areas inadvertently also designate these areas as needing assistance, potentially leading to the development of neighborhood stigma. The common coupling of resource allocation and area designation makes it difficult to measure the stigma effect. However, the Swedish police’s listing of “vulnerable” neighborhoods, initially introduced in 2015, lacked accompanying resources, offering a unique opportunity to examine the isolated impact of place-based policies on stigma. We study the stigma associated with unfavorable area labels through an analysis of how police listings affect housing prices — a reliable measure of location value. Employing the synthetic control method, we find that the list resulted in an average price decrease of 3.6% within one year and 6.5% within six years in the designated neighborhoods. In line with ideas of racial stigma, we also find that areas with a higher proportion of minority residents prior to classification experienced more pronounced negative effects.
Place, publisher, year, edition, pages
Elsevier, 2026
National Category
Economics
Identifiers
urn:nbn:se:uu:diva-577802 (URN)10.1016/j.regsciurbeco.2026.104191 (DOI)001673024700001 ()2-s2.0-105027569658 (Scopus ID)
Funder
The Jan Wallander and Tom Hedelius Foundation
2026-01-282026-01-282026-02-13Bibliographically approved