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Evidence from a Natural Experiment

Author

Listed:
  • Edin, P.-A.
  • Fredriksson, P.
  • Aslund, O.

Abstract

Recent immigrants tend to locate in ethnic "enclaves" within metropolitan areas. The economic consequence of living in such enclaves is still an unresolved issue. We use an immigrant policy initiative in Sweden, when government authorities distributed refugee immigrants across locales in a way that may be considered exogenous. This policy initiative provides a unique natural experiment, which allows us to estimate the causal effect on labor market outcomes of living in enclaves. We find substantive evidence of sorting across locations. When sorting is taken into account, living in enclaves improves labor market outcomes; for instance, the earnings gain associated with a standard deviation increase in ethnic concentration is in the order of four to five percent.

Suggested Citation

  • Edin, P.-A. & Fredriksson, P. & Aslund, O., 2000. "Evidence from a Natural Experiment," Papers 2000:21, Uppsala - Working Paper Series.
    • Handle: RePEc:fth:uppaal:2000:21
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    Cited by:

    1. Brian Bell & Stephen Machin, 2012. "The Crime – Immigration Nexus: Evidence from Recent Research," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 10(1), pages 48-54, 04.
    2. Stephen Gibbons & Olmo Silva & Felix Weinhardt, 2013. "Everybody Needs Good Neighbours? Evidence from Students’ Outcomes in England," Economic Journal, Royal Economic Society, vol. 123, pages 831-874, September.
    3. Brian Bell & Stephen Machin, 2013. "Immigrant Enclaves And Crime," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 118-141, February.
    4. Judith K. Hellerstein & Melissa McInerney & David Neumark, 2011. "Neighbors and Coworkers: The Importance of Residential Labor Market Networks," Journal of Labor Economics, University of Chicago Press, vol. 29(4), pages 659-695.
    5. Nekby, Lena, 2010. "Inter- and Intra-Marriage Premiums Revisited: It’s probably who you are, not who you marry!," Research Papers in Economics 2010:23, Stockholm University, Department of Economics.
    6. Saiz, Albert, 2007. "Immigration and housing rents in American cities," Journal of Urban Economics, Elsevier, vol. 61(2), pages 345-371, March.
    7. Teresa Casey & Christian Dustmann, 2010. "Immigrants' Identity, Economic Outcomes and the Transmission of Identity across Generations," Economic Journal, Royal Economic Society, vol. 120(542), pages 31-51, February.
    8. Patacchini, Eleonora & Zenou, Yves, 2012. "Ethnic networks and employment outcomes," Regional Science and Urban Economics, Elsevier, vol. 42(6), pages 938-949.
    9. Olof Åslund & John Östh & Yves Zenou, 2010. "How important is access to jobs? Old question--improved answer," Journal of Economic Geography, Oxford University Press, vol. 10(3), pages 389-422, May.
    10. Verena Dill & Uwe Jirjahn & Georgi Tsertsvadze, 2015. "Residential Segregation and Immigrants’ Satisfaction with the Neighborhood in Germany," Social Science Quarterly, Southwestern Social Science Association, vol. 96(2), pages 354-368, June.
    11. Cobb-Clark, Deborah A. & Sinning, Mathias G., 2011. "Neighborhood diversity and the appreciation of native- and immigrant-owned homes," Regional Science and Urban Economics, Elsevier, vol. 41(3), pages 214-226, May.
    12. Akbar Marvasti, 2010. "Occupational Safety and English Language Proficiency," Journal of Labor Research, Springer, vol. 31(4), pages 332-347, December.
    13. Olof Åslund & Dan-Olof Rooth, 2007. "Do when and where matter? initial labour market conditions and immigrant earnings," Economic Journal, Royal Economic Society, vol. 117(518), pages 422-448, March.
    14. Stephen Gibbons & Olmo Silva & Felix Weinhardt, 2010. "Do Neighbours Affect Teenage Outcomes? Evidence from Neighbourhood Changes in England," SERC Discussion Papers 0063, Centre for Economic Performance, LSE.
    15. Anna Damm, 2009. "Determinants of recent immigrants’ location choices: quasi-experimental evidence," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(1), pages 145-174, January.
    16. Cutler, David M. & Glaeser, Edward L. & Vigdor, Jacob L., 2008. "When are ghettos bad? Lessons from immigrant segregation in the United States," Journal of Urban Economics, Elsevier, vol. 63(3), pages 759-774, May.
    17. Nielsen, Helena Skyt & Rosholm, Michael & Smith, Nina & Husted, Leif, 2001. "Intergenerational transmissions and the school-to-work transition of 2. generation immigrants," CLS Working Papers 01-4, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
    18. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    19. Åslund, Olof & Böhlmark, Anders & Nordström Skans, Oskar, 2009. "Age at migration and social integration," Working Paper Series 2009:21, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    20. Alexander M. Danzer, 2012. "Economic Benefits of Facilitating the Integration of Immigrants," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(4), pages 14-19, 02.
    21. Oddbjørn Raaum & Kjell G. Salvanes & Erik O. Sørensen, 2006. "The Neighbourhood is Not What it Used to be," Economic Journal, Royal Economic Society, vol. 116(508), pages 200-222, January.
    22. Aslund, Olof, 2005. "Now and forever? Initial and subsequent location choices of immigrants," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 141-165, March.

    More about this item

    Keywords

    LABOUR MARKET ; IMMIGRATION ; ECONOMICS;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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