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

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  • 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.
  • Handle: RePEc:ces:ceswps:_7084
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    Cited by:

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    2. Sari Pekkala Kerr & William R. Kerr, 2021. "Whose Job Is It Anyway? Coethnic Hiring in New US Ventures," Journal of Human Capital, University of Chicago Press, vol. 15(1), pages 86-127.
    3. Danzer, Alexander M. & Feuerbaum, Carsten & Piopiunik, Marc & Woessmann, Ludger, 2018. "Growing up in Ethnic Enclaves : Language Proficiency and Educational Attainment of Immigrant Children," CAGE Online Working Paper Series 380, Competitive Advantage in the Global Economy (CAGE).
    4. Stips, Felix & Kis-Katos, Krisztina, 2020. "Ethnic Networks and the Employment of Asylum Seekers: Evidence from Germany," IZA Discussion Papers 12903, Institute of Labor Economics (IZA).
    5. Kai Ingwersen & Stephan L. Thomsen, 2021. "The immigrant-native wage gap in Germany revisited," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(4), pages 825-854, December.
    6. Battiston, Diego, 2018. "The Persistent Effects of Brief Interactions: Evidence from Immigrant Ships," MPRA Paper 97151, University Library of Munich, Germany.
    7. Alexander M. Danzer & Carsten Feuerbaum & Marc Piopiunik & Ludger Woessmann, 2022. "Growing up in ethnic enclaves: language proficiency and educational attainment of immigrant children," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(3), pages 1297-1344, July.
    8. Giesecke, Matthias & Schuß, Eric, 2019. "Heterogeneity in marginal returns to language training of immigrants," IAB-Discussion Paper 201919, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Badi H. Baltagi & Ying Deng & Xiangjun Ma, 2018. "Network effects on labor contracts of internal migrants in China: a spatial autoregressive model," Empirical Economics, Springer, vol. 55(1), pages 265-296, August.
    10. Giesing, Yvonne & Battisti, Michele & Laurentsyeva, Nadzeya, 2018. "The Labour Market Integration of Refugees in Germany: Evidence from a Field Experiment," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181522, Verein für Socialpolitik / German Economic Association.
    11. Ansala, Laura & Åslund, Olof & Sarvim¨aki, Matti, 2018. "Immigration history, entry jobs, and the labor market integration of immigrants," Working Paper Series 2018:20, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    12. Ademmer, Esther & Barslund, Mikkel & Benček, David & Di Salvo, Mattia & Groll, Dominik & Hoxhaj, Rezart & Kadkoy, Omar & Lanati, Mauro & Laurentsyeva, Nadzeya & Lücke, Matthias & Ludolph, Lars & Pizzu, 2018. "2018 MEDAM Assessment Report on Asylum and Migration Policies in Europe. Flexible Solidarity: A comprehensive strategy for asylum and immigration in the EU," MEDAM Assessment Report on Asylum and Migration Policies in Europe, Mercator Dialogue on Asylum and Migration (MEDAM), number 182240.
    13. Freitas-Monteiro, Teresa & Ludolph, Lars, 2021. "Barriers to humanitarian migration, victimisation and integration outcomes: evidence from Germany," LSE Research Online Documents on Economics 110500, London School of Economics and Political Science, LSE Library.
    14. Collins, William J. & Zimran, Ariell, 2019. "The economic assimilation of Irish Famine migrants to the United States," Explorations in Economic History, Elsevier, vol. 74(C).
    15. Lars Ludolph, 2021. "The Value of Formal Host-Country Education for the Labour Market Position of Refugees: Evidence from Austria," CESifo Working Paper Series 9241, CESifo.
    16. Pekkala Kerr, Sari & Kerr, William, 2020. "Immigrant entrepreneurship in America: Evidence from the survey of business owners 2007 & 2012," Research Policy, Elsevier, vol. 49(3).
    17. Hong, Jieying & Zhang, Rui, 2021. "Socialization, job search and integration," Economic Modelling, Elsevier, vol. 101(C).
    18. Peri, Giovanni & Rutledge, Zachariah, 2020. "Revisiting Economic Assimilation of Mexican and Central Americans Immigrants in the United States," IZA Discussion Papers 12976, Institute of Labor Economics (IZA).
    19. Felix Stips & Krisztina Kis-Katos, 2020. "The impact of co-national networks on asylum seekers’ employment: Quasi-experimental evidence from Germany," PLOS ONE, Public Library of Science, vol. 15(8), pages 1-22, August.
    20. Laliberté, Jean-William, 2019. "Language skill acquisition in immigrant social networks: Evidence from Australia," Labour Economics, Elsevier, vol. 57(C), pages 35-45.
    21. Zhiling Wang, 2020. "The incompatibility of local economic prosperity and migrants’ social integration: evidence from the Netherlands," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(1), pages 57-78, February.
    22. Jacob Nielsen Arendt & Iben Bolvig & Mette Foged & Linea Hasager & Giovanni Peri, 2020. "Language Training and Refugees' Integration," NBER Working Papers 26834, National Bureau of Economic Research, Inc.
    23. Jacob Nielsen Arendt & Iben Bolvig & Mette Foged & Linea Hasager & Giovanni Peri, 2021. "Language Training and Refugees’ Integration," CReAM Discussion Paper Series 2104, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.

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    More about this item

    Keywords

    networks; immigration; human capital; employment;
    All these keywords.

    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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