IZA DP No. 6575: Does Immigration into Their Neighborhoods Incline Voters Toward the Extreme Right? The Case of the Freedom Party of Austria
revised version published as 'Immigration and Voting for the Far Right' in: Journal of the European Economic Association, 2017, 15 (6), 1341-1385,
This paper explores one potentially important channel through which immigration may drive support for extreme right-wing parties: the presence of immigrants in one's neighborhood. We study the case of the Freedom Party of Austria (FPÃ–). Under the leadership of JÃ¶rg Haider, this party increased its share of votes from less than 5 percent in the early 1980s to 27 percent by the year 1999. Using past regional settlement patterns as a source of exogenous variation, we find a significantly positive effect of the residential proximity of immigrants on FPÃ– votes, explaining roughly a quarter of the cross-community variance in FPÃ– votes. It is the presence of low- and medium-skilled immigrants that drives this result; high-skilled immigrants have no (or even a negative) effect on FPÃ– votes.