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Ethnic Segregation and Immigrants’ Labor Market Outcomes: The Role of Education

Author

Listed:
  • Lou Tian

    (Ohio Education Research Center, John Glenn College of Public Affairs, The Ohio State University, CHRR at The Ohio State University, 921 Chatham Lane, Suite 200, Columbus, OH 43211, United States)

  • Song Tao

    (Department of Economics, Sewanee: The University of the South, 735 University Avenue, Sewanee, TN 37383, United States)

Abstract

Given the conflicting findings about whether ethnic segregation benefits or hurts immigrants’ labor market outcomes in the existing literature, this paper investigates how segregation effects vary within young immigrants’ education levels. We also test the differential segregation effects for young immigrants with different education levels and from ethnic groups with different average education levels. We find that on average, ethnic segregation negatively impacts earnings of highly educated immigrants but benefits lower educated immigrants. Additionally, the net effects of ethnic segregation depend on whether immigrants’ own education levels match their group average education levels. Specifically, being segregated with many highly educated co-ethnics can reverse the negative segregation effects on highly educated immigrants’ earnings. However, a highly educated ethnic enclave can reduce the positive isolation effects for lower educated immigrants. Finally, we do not find significant segregation effects on immigrants’ employment.

Suggested Citation

  • Lou Tian & Song Tao, 2023. "Ethnic Segregation and Immigrants’ Labor Market Outcomes: The Role of Education," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-41, January.
    • Handle: RePEc:vrs:izajle:v:12:y:2023:i:1:p:41:n:1
    DOI: 10.2478/izajole-2023-0005
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    References listed on IDEAS

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    More about this item

    Keywords

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    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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