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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. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. Brian Bell & Stephen Machin, 2013. "Immigrant Enclaves And Crime," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 118-141, February.
    9. Nekby, Lena, 2010. "Inter- and Intra-Marriage Premiums Revisited: It's Probably Who You Are, Not Who You Marry!," IZA Discussion Papers 5317, Institute for the Study of Labor (IZA).
    10. 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.
    11. Saiz, Albert, 2007. "Immigration and housing rents in American cities," Journal of Urban Economics, Elsevier, vol. 61(2), pages 345-371, March.
    12. 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.
    13. Akbar Marvasti, 2010. "Occupational Safety and English Language Proficiency," Journal of Labor Research, Springer, vol. 31(4), pages 332-347, December.
    14. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, Elsevier.
    15. 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.
    16. 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.
    17. Patacchini, Eleonora & Zenou, Yves, 2012. "Ethnic networks and employment outcomes," Regional Science and Urban Economics, Elsevier, vol. 42(6), pages 938-949.
    18. Nielsen, Helena Skyt & Rosholm, Michael & Smith, Nina & Husted, Leif, 2001. "Intergenerational Transmissions and the School-to-Work Transition of 2nd Generation Immigrants," IZA Discussion Papers 296, Institute for the Study of Labor (IZA).
    19. 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.
    20. 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.
    21. Stephen Gibbons & Olmo Silva & Felix Weinhardt, 2010. "Do Neighbours Affect Teenage Outcomes? Evidence from Neighbourhood Changes in England," SERC Discussion Papers 0063, Spatial Economics Research Centre, LSE.
    22. 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.

    More about this item

    Keywords

    LABOUR MARKET ; IMMIGRATION ; ECONOMICS;

    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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