Edin, Per-Anders () (IFAU - Office of Labour Market Policy Evaluation) Fredriksson, Peter () (IFAU - Office of Labour Market Policy Evaluation) Åslund, Olof () (IFAU - Office of Labour Market Policy Evaluation)
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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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Paper provided by IFAU - Institute for Labour Market Policy Evaluation in its series Working Paper Series with number
2000:9.
Length: 37 pages Date of creation: 08 Dec 2000 Date of revision: Publication status: Published in Quarterly Journal of Economics , 2003, pages 329-357. Handle: RePEc:hhs:ifauwp:2000_009
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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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