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Ethnic concentration and language fluency of immigrants in Germany

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  • Danzer, A.
  • Yaman, F.

Abstract

Studies that investigate the effect of the regional ethnic composition on immigrant outcomes have been complicated by the self-selection of ethnic minorities into specific neighbourhoods. We analyse the impact of own-ethnic concentration on the language proficiency of immigrants by exploiting the fact that the initial placement of guest-workers after WWII was determined by labour demanding firms and the federal labour administration and hence exogenous to immigrant workers. Combining several data sets, we find a small but robust and significant negative effect of ethnic concentration on immigrants’ language ability. Simulation results of a choice model in which location and learning decisions are taken simultaneously confirm the presence of the effect. Immigrants with high learning costs are inclined to move to ethnic enclaves, so that the share of German-speakers would increase only modestly even under the counterfactual scenario of a regionally equal distribution of immigrants across Germany.

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Bibliographic Info

Paper provided by Department of Economics, City University London in its series Working Papers with number 11/09.

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Date of creation: 2011
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Handle: RePEc:cty:dpaper:11/09

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Postal: Department of Economics, Social Sciences Building, City University London, Whiskin Street, London, EC1R 0JD, United Kingdom,
Phone: +44 (0)20 7040 8500
Web page: http://www.city.ac.uk
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Related research

Keywords: enclave; ethnic concentration; language proficiency; immigrants; instrumental variable; random utility model;

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References

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  1. Casey Warman, 2006. "Ethnic Enclaves and Immigrant Earnings Growth," Working Papers 1261, Queen's University, Department of Economics.
  2. Anna Piil Damm, 2006. "Ethnic Enclaves and Immigrant Labour Market Outcomes: Quasi-Experimental Evidence," CReAM Discussion Paper Series 0607, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  3. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, October.
  4. David M. Cutler & Edward L. Glaeser, 1995. "Are Ghettos Good or Bad?," NBER Working Papers 5163, National Bureau of Economic Research, Inc.
  5. Bauer, Thomas K. & Epstein, Gil S. & Gang, Ira N., 2002. "Enclaves, Language and the Location Choice of Migrants," IZA Discussion Papers 558, Institute for the Study of Labor (IZA).
  6. Vigdor, Jacob & Glaeser, Edward & Cutler, David, 2008. "When Are Ghettos Bad? Lessons from Immigrant Segregation In the United States," Scholarly Articles 2666726, Harvard University Department of Economics.
  7. Per-Anders Edin & Peter Fredriksson & Olof �slund, 2003. "Ethnic Enclaves And The Economic Success Of Immigrants - Evidence From A Natural Experiment," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 329-357, February.
  8. Christian Dustmann & Arthur Van Soest, 2002. "Language and the earnings of immigrants," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(3), pages 473-492, April.
  9. Dustmann, Christian & Fabbri, Francesca, 2000. "Language Proficiency and Labour Market Performance of Immigrants in the UK," IZA Discussion Papers 156, Institute for the Study of Labor (IZA).
  10. George J. Borjas, 1994. "Ethnicity, Neighborhoods, and Human Capital Externalities," NBER Working Papers 4912, National Bureau of Economic Research, Inc.
  11. Borjas, George J., 1998. "To Ghetto or Not to Ghetto: Ethnicity and Residential Segregation," Journal of Urban Economics, Elsevier, vol. 44(2), pages 228-253, September.
  12. Christian Dustmann & Arthur van Soest, 2001. "Language Fluency And Earnings: Estimation With Misclassified Language Indicators," The Review of Economics and Statistics, MIT Press, vol. 83(4), pages 663-674, November.
  13. Edward P. Lazear, 1995. "Culture and Language," NBER Working Papers 5249, National Bureau of Economic Research, Inc.
  14. Dustmann, Christian, 1994. "Speaking Fluency, Writing Fluency and Earnings of Migrants," Journal of Population Economics, Springer, vol. 7(2), pages 133-56.
  15. Hoyt Bleakley & Aimee Chin, 2004. "Language Skills and Earnings: Evidence from Childhood Immigrants," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 481-496, May.
  16. Paul W. Miller & Barry R. Chiswick, 2002. "Immigrant earnings: Language skills, linguistic concentrations and the business cycle," Journal of Population Economics, Springer, vol. 15(1), pages 31-57.
  17. 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.
  18. Chiswick, Barry R. & Miller, Paul W., 2002. "Do Enclaves Matter in Immigrant Adjustment?," IZA Discussion Papers 449, Institute for the Study of Labor (IZA).
  19. Chiswick, Barry R & Miller, Paul W, 1995. "The Endogeneity between Language and Earnings: International Analyses," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 246-88, April.
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Citations

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Cited by:
  1. Constant, Amelie F. & Schüller, Simone & Zimmermann, Klaus F., 2013. "Ethnic Spatial Dispersion and Immigrant Identity," IZA Discussion Papers 7868, Institute for the Study of Labor (IZA).
  2. Isphording, Ingo E. & Otten, Sebastian, 2014. "Linguistic Barriers in the Destination Language Acquisition of Immigrants," IZA Discussion Papers 8090, Institute for the Study of Labor (IZA).
  3. Schlitte, Friso, 2010. "Local human capital, segregation by skill, and skill-specific employment growth," HWWI Research Papers 1-32, Hamburg Institute of International Economics (HWWI).
  4. Jens Ruhose, 2013. "Bildungsleistungen von Migranten und deren Determinanten – Teil II: Primar-, Sekundar- und Tertiärbereich," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 66(10), pages 24-38, 05.
  5. Dürnberger, Andrea & Drasch, Katrin & Matthes, Britta, 2010. "Kontextgestützte Abfrage in Retrospektiverhebungen: Ein kognitiver Pretest zu Erinnerungsprozessen bei Weiterbildungsereignissen," IAB Discussion Paper 201020, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  6. Achatz, Juliane & Trappmann, Mark, 2011. "Arbeitsmarktvermittelte Abgänge aus der Grundsicherung : der Einfluss von personen- und haushaltsgebundenen Barrieren," IAB Discussion Paper 201102, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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