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The Effect of Enclave Residence on the Labour Force Activities of Immigrants in Canada

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  • Tu, Jiong

    (Human Resources and Skills Development Canada - Labour Program)

Abstract

It has been well documented that immigrants' clustering of residence in large cities has been associated with the creation of a number of ethnic enclaves. The intensive exposure to own-ethnic population could affect immigrant labour market involvement positively or negatively. However, no extant Canadian research has provided empirical evidence on the sign of these enclave effects. In this paper, I use the 1981-2001 Censuses to estimate the impact of residence in ethnic enclaves on male immigrants' labour force participation rate and employment probability. For recent immigrants who arrived in Canada within the preceding ten years, the intensity of enclave residence is negatively associated with their labour force participation rate, but positively related to their employment probability in all censuses. However, living in an enclave has no significant effect on the labour force activity of older immigrants who have lived in Canada for more than twenty years. Since immigrants could be attracted to areas with more job opportunities and hence enlarge the size of an enclave, the estimated effects from probit regressions might be positively biased. I then use instrumental variable (IV) method to address this endogeneity problem, and the IV estimates are consistent with the probit regression results.

Suggested Citation

  • Tu, Jiong, 2010. "The Effect of Enclave Residence on the Labour Force Activities of Immigrants in Canada," IZA Discussion Papers 4744, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4744
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    3. Augustin de Coulon & Richmond Egyei & Jonathan Wadsworth, 2020. "Immigration Stocks and Flows, APS and Electoral Register Data," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2020-13, Economic Statistics Centre of Excellence (ESCoE).
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    6. Schaffner, Sandra & Treude, Barbara, 2014. "The Effect of Ethnic Clustering on Migrant Integration in Germany," Ruhr Economic Papers 536, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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    More about this item

    Keywords

    immigrant; ethnicity; enclave; labour force participation; employment; Canada;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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