Refugee reception, extreme-right voting, and compositional amenities: Evidence from Italian municipalities

We use data from Italy to study the political and social impact of a refugee reception policy (SPRAR) directly managed by local governments, whose features recall the conditions of the contact theory (Allport, 1954). Instrumental variables estimates indicate that municipalities that opened a refugee center between the 2013 and 2018 national elections experienced a change in the vote shares of extreme-right parties that is approximately 7 percentage points lower compared to municipalities that did not open a refugee center. We document that the positive impact of SPRARs on "compositional amenities"(i.e., local schools) and population growth allows explaining the negative impact on anti-immigrant prejudice. Finally, we provide evidence of spillovers in prejudice reduction in neighboring municipalities without a SPRAR.