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Ethnic regional networks and immigrants' earnings: A spatial autoregressive network approach

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  • Xingang Wang
  • Sholeh A. Maani

Abstract

The conventional model of immigrant earnings does not account for the correlation of outcomes across immigrant ethnic networks. We apply a spatial autoregressive network approach to account for the spill‐over effects of migrant ethnic group economic resources and labour market outcomes. We employ unit‐record data across 10 years for New Zealand, a major immigrant‐receiving country. By applying the generalized method of moment (GMM) estimation, we address endogeneity of the spatial network variable. Results confirm strong positive associations of earnings with both ethnic concentration and networks of resources. The analytically enhanced approach provides opportunities for new research on the determinants of immigrant earnings. El modelo convencional de ingresos de los inmigrantes no tiene en cuenta la correlación de resultados entre las redes étnicas de inmigrantes. En este estudio se aplica un enfoque de red autorregresiva espacial con el que tener en cuenta los efectos de spillover de los recursos económicos de los grupos étnicos de personas migrantes y los resultados del mercado laboral. Se emplearon datos de registro unitario de 10 años para Nueva Zelanda, un importante país receptor de inmigrantes. La endogeneidad de la variable de red espacial se abordó mediante una estimación por medio del Método de los Momentos Generalizado (MMG). Los resultados confirman las fuertes asociaciones positivas de los ingresos tanto con la concentración étnica como con las redes de recursos. La mejora analítica del enfoque crea oportunidades para nuevas investigaciones sobre los determinantes de los ingresos de los inmigrantes. 従来の移入者所得モデルでは、移入者の民族ネットワーク全体の結果の相関性を説明することができない。本稿では、空間的自己回帰ネットワークアプローチを適用して移民の民族グループの経済的資源と労働市場の結果の波及効果を説明する。主要な移民受入国であるニュージーランドの10年間のユニットレコード・データを使用する。一般化モーメント法による推定を行い、空間ネットワーク変数の内生性に対処する。結果から、所得と民族的集中および所得と資源のネットワークのいずれにも強い正の相関性が認められる。分析アプローチを強化することにより、移入者の所得の決定要因に関する新たな研究の機会が得られる。

Suggested Citation

  • Xingang Wang & Sholeh A. Maani, 2021. "Ethnic regional networks and immigrants' earnings: A spatial autoregressive network approach," Papers in Regional Science, Wiley Blackwell, vol. 100(1), pages 141-168, February.
  • Handle: RePEc:bla:presci:v:100:y:2021:i:1:p:141-168
    DOI: 10.1111/pirs.12559
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    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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