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Neighbourhood effects, preference heterogeneity and immigrant educational attainment

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  • Buly Cardak
  • James Ted McDonald

Abstract

This paper investigates differences between the educational attainment of immigrants, children of immigrants and native-born individuals in Australia by using Australian Youth Survey (AYS) data combined with aggregate Australian Census data. Differences in educational attainment are decomposed into: (i) typical demographic and socio-economic sources common to all ethnic groups; (ii) unobserved region of residence and region of origin effects; and (iii) neighbourhood effects such as degree and ethnic concentration of particular ethnic groups in different neighbourhoods. A theoretical model incorporating these effects is proposed but structural estimation is not possible for lack of appropriate data. Instead, a reduced form methodology is proposed and employed. The empirical results identify positive ethnic neighbourhood effects in high school completion and university enrolment for some immigrant groups in Australia, in particular first and second generation immigrants from Asia. The results indicate that it is not just the size of the ethnic network but the 'quality' of the network that is important.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 6 ()
Pages: 559-572

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Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:559-572

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References

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  1. Chiswick, Barry R & Miller, Paul M, 1996. "Ethnic Networks and Language Proficiency among Immigrants," Journal of Population Economics, Springer, vol. 9(1), pages 19-35, February.
  2. Julian R. Betts & Magnus Lofstrom, 1998. "The Educational Attainment of Immigrants: Trends and Implications," NBER Working Papers 6757, National Bureau of Economic Research, Inc.
  3. Marianne Bertrand & Erzo F. P. Luttmer & Sendhil Mullainathan, 1999. "Network Effects and Welfare Cultures," Working Papers 9903, Harris School of Public Policy Studies, University of Chicago.
  4. Gang, Ira N. & Zimmermann, Klaus F., 1999. "Is Child like Parent? Educational Attainment and Ethnic Origin," IZA Discussion Papers 57, Institute for the Study of Labor (IZA).
  5. Cardak, Buly A, 1999. "Heterogeneous Preferences, Education Expenditures and Income Distribution," The Economic Record, The Economic Society of Australia, vol. 75(228), pages 63-76, March.
  6. Chiswick, Barry R. & Miller, Paul W., 1994. "The determinants of post-immigration investments in education," Economics of Education Review, Elsevier, vol. 13(2), pages 163-177, June.
  7. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
  8. Ira N. Gang, 1997. "Schooling, Parents and Country," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 66(1), pages 180-186.
  9. Cardak, B.A., 1998. "Preferences Over Education Expenditure," Department of Economics - Working Papers Series 623, The University of Melbourne.
  10. Chiswick, Barry R, 1988. "Differences in Education and Earnings across Racial and Ethnic Groups: Tastes, Discrimination, and Investments in Child Quality," The Quarterly Journal of Economics, MIT Press, vol. 103(3), pages 571-97, August.
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Cited by:
  1. Nieuwenhuis, Jaap & Hooimeijer, Pieter & van Ham, Maarten & Meeus, Wim, 2013. "Neighbourhood Effects on Migrant Youth's Educational Commitments: An Enquiry into Personality Differences," IZA Discussion Papers 7510, Institute for the Study of Labor (IZA).
  2. Alexander M. Danzer & Hulya Ulku, 2009. "Determinants of Integration and Its Impact on the Economic Success of Immigrants: A Case Study of the Turkish Community in Berlin," Brooks World Poverty Institute Working Paper Series 7009, BWPI, The University of Manchester.
  3. NONNEMAN, Walter, 2012. "School achievement and failure of immigrant children in Flanders," Working Papers 2012008, University of Antwerp, Faculty of Applied Economics.
  4. Klaus Nowotny & Dieter Pennerstorfer, 2011. "Ethnic Networks and the Location Choice of Migrants in Europe," WIFO Working Papers 415, WIFO.
  5. Siahaan, Freddy & Lee, Daniel Y. & Kalist, David E., 2014. "Educational attainment of children of immigrants: Evidence from the national longitudinal survey of youth," Economics of Education Review, Elsevier, vol. 38(C), pages 1-8.
  6. Jessica Yiu, 2011. "The School Readiness of the Children of Immigrants in the United States: The Role of Families, Childcare and Neighborhoods," Working Papers 1314, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing..

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