Sanctuary policies and the mortgage market behavior: Reducing uncertainty to promote financial inclusion
研究了美国县级庇护政策如何通过减少驱逐风险、增强借贷双方信心，显著提升西班牙裔群体的抵押贷款可得性，为利用地方政策促进金融包容提供了新证据。
This paper examines the impact of sanctuary policies on the financial inclusion of Hispanics in the U.S. mortgage market. By reducing local cooperation with federal immigration authorities, sanctuary policies reduce the risk of deportation and signal local acceptance of irregular immigrants and their families. This reduction in uncertainty for Hispanic borrowers and profit-maximizing lenders influences decision-making in financial markets. To identify the effect, I take advantage of the staggered implementation of county-level sanctuary policies between 2010 and 2021. Using an event study approach, I find evidence of a significant improvement in financial inclusion in counties that adopted local sanctuary policies. The results are consistent with the literature pointing to a trust spiral created by sanctuary policies and provide novel evidence that such local policies can serve as a tool for improving financial inclusion.