Did the escalation of the financial crisis of 2008 affect the perception of immigration-related threats? A natural experiment

In this paper, we apply a natural experiment approach, comparing specific data from the European Values Study prior to and after the escalation of the financial crisis in 2008. The aim is to disentangle the short-term effect of the crisis on the relationship between social vulnerability and immigrant-related threat perceptions for the residents of Luxembourg (natives and foreign nationals). Propensity score matching is used to ensure the balanced composition of the control group and treated group with regard to the observed covariates. The results reveal that vulnerable foreign nationals demonstrated lower perceptions of immigration-related threats after the escalation of the crisis than their pre-crisis counterparts. No significant effect of the escalation of the crisis was found among Luxembourg nationals.