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Evidence from a Natural Experiment

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Author Info
Edin, P.-A.
Fredriksson, P.
Aslund, O.

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Abstract

Recent immigrants tend to locate in ethnic "enclaves" within metropolitan areas. The economic consequence of living in such enclaves is still an unresolved issue. We use an immigrant policy initiative in Sweden, when government authorities distributed refugee immigrants across locales in a way that may be considered exogenous. This policy initiative provides a unique natural experiment, which allows us to estimate the causal effect on labor market outcomes of living in enclaves. We find substantive evidence of sorting across locations. When sorting is taken into account, living in enclaves improves labor market outcomes; for instance, the earnings gain associated with a standard deviation increase in ethnic concentration is in the order of four to five percent.

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Publisher Info
Paper provided by Uppsala - Working Paper Series in its series Papers with number 2000-21.

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Length: 37 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:uppaal:2000-21

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Postal: UPPSALA UNIVERSITY, DEPARTMENT OF ECONOMICS, S-751 20 UPPSALA SWEDEN.
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
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Web page: http://www.nek.uu.se/
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Related research
Keywords: LABOUR MARKET ; IMMIGRATION ; ECONOMICS;

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Find related papers by JEL classification:
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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  1. Nielsen, Helena Skyt & Rosholm, Michael & Smith, Nina & Husted, Leif, 2001. "Intergenerational transmissions and the school-to-work transition of 2. generation immigrants," CLS Working Papers 01-4, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research. [Downloadable!]
    Other versions:
  2. Åslund, Olof, 2001. "Now and forever? Initial and subsequent location choices of immigrants," Working Paper Series 2001:11, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  3. Raaum, Oddbjørn & Salvanes, Kjell G. & Sørensen, Erik Ø., 2003. "The Neighbourhood Is Not What It Used to Be," IZA Discussion Papers 952, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Albert Saiz, 2003. "Immigration and housing rents in American cities," Working Papers 03-12, Federal Reserve Bank of Philadelphia. [Downloadable!]
    Other versions:
  5. Åslund, Olof & Rooth, Dan-Olof, 2003. "Do when and where matter? Initial labor market conditions and immigrant earnings," Working Paper Series 2003:7, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
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