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Dynamic Effects of Co-Ethnic Networks on Immigrants' Economic Success

Author

Listed:
  • Michele Battisti
  • Giovanni Peri
  • Agnese Romiti

Abstract

This paper investigates how the size of co-ethnic networks at the time of arrival affect the economic success of immigrants in Germany. Applying panel analysis with a large set of fixed effects and controls, we isolate the association between initial network size and long-run immigrant outcomes. We also look at those who were assigned to an initial location independently of their choice allows a causal interpretation of our estimates. We find that immigrants initially located in places with larger co-ethnic networks are more likely to be employed at first, but have a lower probability of investing in human capital.

Suggested Citation

  • Michele Battisti & Giovanni Peri & Agnese Romiti, 2018. "Dynamic Effects of Co-Ethnic Networks on Immigrants' Economic Success," CESifo Working Paper Series 7084, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_7084
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    Keywords

    networks; immigration; human capital; employment;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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