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Ethnic Enclaves and Immigrant Labor Market Outcomes: Quasi-Experimental Evidence

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Author Info
Anna Piil Damm

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Abstract

I examine the effects of the ethnic enclave size on labor market outcomes of immigrants. I account for ability sorting into enclaves by exploiting a Danish spatial dispersal policy under which refugees were randomly dispersed across locations. First, I find strong evidence that refugees with unfavorable unobserved characteristics self-select into ethnic enclaves. Second, a relative standard deviation increase in the ethnic enclave size increases annual earnings by 18% on average, irrespective of skill level. Third, further findings are consistent with the explanation that ethnic networks disseminate job information, which increases the job-worker match quality and thereby the hourly wage rate. (c) 2009 by The University of Chicago.

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File URL: http://www.journals.uchicago.edu/doi/pdf/10.1086/599336
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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 27 (2009)
Issue (Month): 2 (04)
Pages: 281-314
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Handle: RePEc:ucp:jlabec:v:27:y:2009:i:2:p:281-314

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  4. Barry Chiswick & Paul Miller, 1996. "Ethnic networks and language proficiency among immigrants," Journal of Population Economics, Springer, vol. 9(1), pages 19-35, February. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Andersson, Fredrik & Burgess, Simon & Lane, Julia, 2009. "Do as the Neighbors Do: The Impact of Social Networks on Immigrant Employment," IZA Discussion Papers 4423, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Albrecht Glitz, 2006. "The Labour Market Impact of Immigration: Quasi-Experimental Evidence," CReAM Discussion Paper Series 0612, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
  3. Florence Kondylis, 2007. "Conflict-Induced Displacement and Labour Market Outcomes: Evidence from Post-War Bosnia and Herzegovina," CEP Discussion Papers dp0777, Centre for Economic Performance, LSE. [Downloadable!]
  4. Judith K. Hellerstein & Melissa McInerney & David Neumark, 2009. "Spatial Mismatch, Immigrant Networks, and Hispanic Employment in the United States," NBER Working Papers 15398, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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