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Ethnic Enclaves and the Economic Success of Immigrants – Evidence from a Natural Experiment, Quarterly (2003)
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| Venue: | Journal of Economics |
| Citations: | 133 - 7 self |
BibTeX
@ARTICLE{Edin03ethnicenclaves,
author = {Per-anders Edin and Peter Fredriksson},
title = {Ethnic Enclaves and the Economic Success of Immigrants – Evidence from a Natural Experiment, Quarterly},
journal = {Journal of Economics},
year = {2003},
pages = {329--357}
}
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Abstract
Recent immigrants tend to locate in ethnic “enclaves ” within metropolitan areas. The economic consequence of living in such enclaves is still an unresolved issue. We use data from an immigrant policy initiative in Sweden, when govern-ment authorities distributed refugee immigrants across locales in a way that we argue is exogenous. This policy initiative provides a unique natural experiment, which allows us to estimate the causal effect on labor market outcomes of living in enclaves. We nd substantive evidence of sorting across locations. When sorting is taken into account, living in enclaves improves labor market outcomes for less skilled immigrants: the earnings gain associated with a standard deviation in-crease in ethnic concentration is 13 percent. Furthermore, the quality of the enclave seems to matter. Members of high-income ethnic groups gain more from living in an enclave than members of low-income ethnic groups. I.
Keyphrases
ethnic enclave immigrant evidence natural experiment economic success enclave improves labor market unresolved issue low-income ethnic group ethnic concentration metropolitan area economic consequence standard deviation in-crease causal effect govern-ment authority recent immigrant substantive evidence labor market outcome earnings gain skilled immigrant refugee immigrant immigrant policy initiative unique natural experiment high-income ethnic group policy initiative
