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

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Author Info
Anna Piil Damm () (CAM and Department of Economics, Aarhus School of Business)

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Abstract

This study investigates empirically how residence in ethnic enclaves affects labour market outcomes of refugees. Self-selection into ethnic enclaves in terms of unobservable characteristics is taken into account by exploitation of a Danish spatial dispersal policy which randomly disperses new refugees across locations conditional on six individual-specific characteristics. The results show that refugees with unfavourable unobserved characteristics are found to self-select into ethnic enclaves. Furthermore, taking account of negative self-selection, a relative standard deviation increase in ethnic group size on average increases the employment probability of refugees by 4 percentage points and earnings by 21 percent. I argue that in case of heterogenous treatment effects, the estimated effects are local average treatment effects.

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Paper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 0607.

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Date of creation: Aug 2006
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Handle: RePEc:crm:wpaper:0607

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Keywords: Migration;

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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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