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Ethnicity, Neighborhoods, and Human-Capital Externalities

In: Foundational Essays in Immigration Economics

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  • GEORGE J. BORJAS

Abstract

The socioeconomic performance of today’s workers depends not only on parental skills, but also on the average skills of the ethnic group in the parents’ generation (or ethnic capita/). This paper investigates the link between the ethnic externality and ethnic neighborhoods. The evidence indicates that residential segregation and the external effect of ethnicity are linked, partly because ethnic capital summarizes the socioeconomic background of the neighborhood where the children were raised. Ethnicity has an external effect, even among persons who grow up in the same neighborhood, when children are exposed frequently to persons who share the same ethnic background.

Suggested Citation

  • George J. Borjas, 2021. "Ethnicity, Neighborhoods, and Human-Capital Externalities," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 7, pages 135-160, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789811240812_0007
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    Keywords

    Immigration; Economics; Labor Markets; Refugees; Self-selection; Return Migration; Migration; Costs and Benefits from Immigration; Assimilation; Cohort Effects; National Origin; Ethnicity; Neighborhood Effects; Ethnic Capital; Internal Migration;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor

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