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Ethnic Networks and the Location Choice of Migrants in Europe

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  • Nowotny, Klaus

    ()
    (University of Salzburg)

  • Pennerstorfer, Dieter

    ()
    (Austrian Institute of Economic Research)

Abstract

This paper analyzes the role of ethnic networks in the location decision of migrants to the EU at the regional level. Using a random parameters logit specification we find a substantially positive effect of ethnic networks on the location decision of migrants. Furthermore, we find evidence of spatial spillovers in the effect of ethnic networks. Analyzing the trade-off between potential income and network size, we find that migrants would require a sizable compensation for living in a region with a smaller ethnic network, especially when considering regions where only few previous migrants from the same country of origin are located.

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Bibliographic Info

Paper provided by University of Salzburg in its series Working Papers in Economics and Finance with number 2012-7.

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Length: 46 pages
Date of creation: 03 Sep 2012
Date of revision:
Handle: RePEc:ris:sbgwpe:2012_007

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Keywords: network migration; ethnic networks; random parameters logit;

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References

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Cited by:
  1. Dieter Pennerstorfer, 2011. "Export, Migration, and Costs of Market Entry: Evidence from Central European Firms," WIFO Working Papers 405, WIFO.
  2. Klaus Nowotny, 2011. "Welfare Magnets, Taxation and the Location Decisions of Migrants to the EU," ERSA conference papers ersa11p133, European Regional Science Association.

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