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Ethnic enclaves and segregation—self-employment and employment patterns among forced migrants

Author

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  • Johan Klaesson

    (Jönköping International Business School
    Research Institute of Industrial Economics (IFN))

  • Özge Öner

    (Jönköping International Business School
    Research Institute of Industrial Economics (IFN)
    University of Cambridge)

Abstract

The relevance of residential segregation and ethnic enclaves for labor market sorting of immigrants has been investigated by a large body of literature. Previous literature presents competing arguments and mixed results for the effects of segregation and ethnic concentration on various labor market outcomes. The geographical size of the area at which segregation and/or ethnic concentration is measured, however, is left to empirical work to determine. We argue that ethnic concentration and segregation should not be used interchangeably, and more importantly, the geographical area at which they are measured relates directly to different mechanisms. We use a probabilistic approach to identify the likelihood that an immigrant is employed or a self-employed entrepreneur in the year 2005 with respect to residential segregation and ethnic concentration at the level of the neighborhood, municipality, and local labor market level jointly. We study three groups of immigrants that accentuate the differences between forced and pulled migrants: (i) the first 15 member states of European Union (referred to as EU 15) and the Nordic countries, (ii) the Balkan countries, and (iii) countries in the Middle East. We find that ethnic enclaves, proxied by ethnic concentration at varying levels, indicate mixed results for the different immigrant groups we study, both for their employment and entrepreneurship probability, whereas residential segregation has a more uniformly distributed result where its relationship to any of the two labor market outcomes is almost always negative or insignificant.

Suggested Citation

  • Johan Klaesson & Özge Öner, 2021. "Ethnic enclaves and segregation—self-employment and employment patterns among forced migrants," Small Business Economics, Springer, vol. 56(3), pages 985-1006, February.
    • Handle: RePEc:kap:sbusec:v:56:y:2021:i:3:d:10.1007_s11187-019-00313-y
    DOI: 10.1007/s11187-019-00313-y
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    2. Gordon F. Mulligan, 2021. "Five new contributions to urban studies," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(6), pages 1954-1973, December.
    3. Matti Viren, 2022. "The fiscal consequences of immigration: a study of local governments’ expenditures," Discussion Papers 151, Aboa Centre for Economics.
    4. C. Annique Un & Chhomran Ou & Silvy Un Lafayette, 2022. "From the liability to the advantage of refugeeness," Journal of International Business Policy, Palgrave Macmillan, vol. 5(4), pages 530-561, December.

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