Advanced Search
MyIDEAS: Login

Ethnic Networks and the Location Choice of Migrants in Europe

Contents:

Author Info

  • 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.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.uni-salzburg.at/fileadmin/oracle_file_imports/1929183.PDF
File Function: Full text
Download Restriction: no

Bibliographic Info

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

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

Contact details of provider:
Postal: Kapitelgasse 5 - 7, 5020 Salzburg
Phone: +43 662 8044-3700
Fax: +43 662 8044-623
Web page: http://www.sbg.ac.at/wiw/home.htm
More information through EDIRC

Related research

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

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. David M. Drukker & Richard Gates, 2006. "Generating Halton sequences using Mata," Stata Journal, StataCorp LP, vol. 6(2), pages 214-228, June.
  2. Bauer, Thomas K. & Epstein, Gil S. & Gang, Ira N., 2000. "What are Migration Networks?," IZA Discussion Papers 200, Institute for the Study of Labor (IZA).
  3. Carrington, William J & Detragiache, Enrica & Vishwanath, Tara, 1996. "Migration with Endogenous Moving Costs," American Economic Review, American Economic Association, vol. 86(4), pages 909-30, September.
  4. Cardak, B.A. & McDonald, J.T., 2000. "Neighborhood Effects, Preference Heterogeneity and Immigrant Educational Attainment," Papers 2001-03, Tasmania - Department of Economics.
  5. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
  6. Eleonora Patacchini & Yves Zenou, 2012. "Ethnic Networks and Employment Outcomes," CReAM Discussion Paper Series 1202, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  7. Lorenzo Cappellari & Stephen P. Jenkins, 2006. "Calculation of Multivariate Normal Probabilities by Simulation, with Applications to Maximum Simulated Likelihood Estimation," Discussion Papers of DIW Berlin 584, DIW Berlin, German Institute for Economic Research.
  8. Anna Piil Damm, 2005. "Determinants of Recent Immigrants’ Location Choices: Quasi-Experimental Evidence," CAM Working Papers 2005-17, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  9. Jaeger, David A., 2006. "Green Cards and the Location Choices of Immigrants in the United States, 1971-2000," IZA Discussion Papers 2145, Institute for the Study of Labor (IZA).
  10. Paul D. Gottlieb & George Joseph, 2006. "College-To-Work Migration Of Technology Graduates And Holders Of Doctorates Within The United States," Journal of Regional Science, Wiley Blackwell, vol. 46(4), pages 627-659.
  11. Borjas, George J, 1992. "Ethnic Capital and Intergenerational Mobility," The Quarterly Journal of Economics, MIT Press, vol. 107(1), pages 123-50, February.
  12. David M. Cutler & Edward L. Glaeser, 1995. "Are Ghettos Good or Bad?," NBER Working Papers 5163, National Bureau of Economic Research, Inc.
  13. Jeffrey Grogger & Gordon H. Hanson, 2008. "Income Maximization and the Selection and Sorting of International Migrants," NBER Working Papers 13821, National Bureau of Economic Research, Inc.
  14. Åslund, Olof & Edin, Per-Anders & Fredriksson, Peter, 2001. "Ethnic Enclaves and the Economic Success of Immigrants - Evidence from a Natural Experiment," CEPR Discussion Papers 2729, C.E.P.R. Discussion Papers.
  15. Bisin, Alberto & Patacchini, Eleonora & Verdier, Thierry & Zenou, Yves, 2011. "Ethnic Identity and Labor-Market Outcomes of Immigrants in Europe," CEPR Discussion Papers 8212, C.E.P.R. Discussion Papers.
  16. Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2008. "Selection and network effects--Migration flows into OECD countries 1990-2000," European Economic Review, Elsevier, vol. 52(7), pages 1160-1186, October.
  17. Axel Heitmueller, 2003. "Co-ordination Failures in Network Migration," CERT Discussion Papers 0302, Centre for Economic Reform and Transformation, Heriot Watt University.
  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. Madeline Zavodny, 1998. "Determinants of recent immigrants' locational choices," Working Paper 98-3, Federal Reserve Bank of Atlanta.
  20. , 2008. "The Joint Choice Of An Individual'S Occupation And Destination," Journal of Regional Science, Wiley Blackwell, vol. 48(5), pages 893-919.
  21. Kaivan Munshi, 2003. "Networks In The Modern Economy: Mexican Migrants In The U.S. Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(2), pages 549-599, May.
  22. Gonzalez, Arturo, 1998. "Mexican Enclaves and the Price of Culture," Journal of Urban Economics, Elsevier, vol. 43(2), pages 273-291, March.
  23. Bhat, Chandra R., 2001. "Quasi-random maximum simulated likelihood estimation of the mixed multinomial logit model," Transportation Research Part B: Methodological, Elsevier, vol. 35(7), pages 677-693, August.
  24. Paul S. Davies & Michael J. Greenwood & Haizheng Li, 2001. "A Conditional Logit Approach to U.S. State-to-State Migration," Journal of Regional Science, Wiley Blackwell, vol. 41(2), pages 337-360.
  25. Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 371-91, October.
  26. Edward P. Lazear, 1999. "Culture and Language," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S95-S126, December.
  27. Epstein, Gil S, 2002. "Informational Cascades and Decision to Migrate," CEPR Discussion Papers 3287, C.E.P.R. Discussion Papers.
  28. Arne Risa Hole, 2007. "Fitting mixed logit models by using maximum simulated likelihood," Stata Journal, StataCorp LP, vol. 7(3), pages 388-401, September.
  29. Andersson Joona, Pernilla & Wadensjö, Eskil, 2007. "The Employees of Native and Immigrant Self-Employed," IZA Discussion Papers 3147, Institute for the Study of Labor (IZA).
  30. Francesc Ortega & Giovanni Peri, 2009. "The Causes and Effects of International Migrations: Evidence from OECD Countries 1980-2005," NBER Working Papers 14833, National Bureau of Economic Research, Inc.
  31. Wido Geis & Silke Uebelmesser & Martin Werding, 2008. "How do Migrants Choose their Destination Country? An Analysis of Institutional Determinants," CESifo Working Paper Series 2506, CESifo Group Munich.
  32. Dahlberg, Matz & Eklöf, Matias, 2003. "Relaxing the IIA Assumption in Locational Choice Models: A Comparison Between Conditional Logit, Mixed Logit, and Multinomial Probit Models," Working Paper Series 2003:9, Uppsala University, Department of Economics.
  33. Dominique M. Gross & Nicolas Schmitt, 2003. "The Role of Cultural Clustering in Attracting New Immigrants," Journal of Regional Science, Wiley Blackwell, vol. 43(2), pages 295-318.
  34. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
  35. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-73, October.
  36. Mauricio Sillano & Juan de Dios Ort�zar, 2005. "Willingness-to-pay estimation with mixed logit models: some new evidence," Environment and Planning A, Pion Ltd, London, vol. 37(3), pages 525-550, March.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Klaus Nowotny, 2011. "Welfare Magnets, Taxation and the Location Decisions of Migrants to the EU," ERSA conference papers ersa11p133, European Regional Science Association.
  2. Dieter Pennerstorfer, 2012. "Export, Migration, and Costs of Market Entry: Evidence from Central European Firms," ERSA conference papers ersa12p954, European Regional Science Association.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ris:sbgwpe:2012_007. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Harald Oberhofer).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.