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Does residence in an ethnic community help immigrants in a recession?

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  • Zhu, Pengyu
  • Liu, Cathy Yang
  • Painter, Gary

Abstract

Research on how the residential segregation of immigrant populations has impacted their labor market outcomes presents many challenges because of the fact that immigrants often choose to locate near co-ethnics to share resources and cultural amenities. Because not all immigrants choose to live in these ethnic communities, identification of a causal effect on living in an ethnic community is problematic. The estimation of the effect of living in these ethnic communities is also difficult because it is ambiguous whether such residence will help or harm the labor market outcomes of immigrants. This study implements a number of approaches to help identify a causal effect, including using sample of adults whose residential location is plausibly exogenous with respect to their labor market outcomes and using the current recession as a source of exogenous variation. Results suggest that residence in an ethnic community after the recession increases the likelihood of working, albeit with longer commutes.

Suggested Citation

  • Zhu, Pengyu & Liu, Cathy Yang & Painter, Gary, 2014. "Does residence in an ethnic community help immigrants in a recession?," Regional Science and Urban Economics, Elsevier, vol. 47(C), pages 112-127.
  • Handle: RePEc:eee:regeco:v:47:y:2014:i:c:p:112-127
    DOI: 10.1016/j.regsciurbeco.2013.09.014
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    Cited by:

    1. Natasha T. Duncan & Brigitte S. Waldorf, 2016. "Immigrant selectivity, immigrant performance and the macro-economic context," Regional Science Policy & Practice, Wiley Blackwell, vol. 8(3), pages 127-143, August.
    2. Hubert Jayet & Glenn Rayp & Ilse Ruyssen & Nadiya Ukrayinchuk, 2016. "Immigrants’ location choice in Belgium," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 57(1), pages 63-89, July.

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