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Ethnic Regional Networks and Immigrants' Earnings: A Spatial Autoregressive Network Approach

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  • Wang, Xingang

    (University of Auckland)

  • Maani, Sholeh A.

    (University of Auckland)

Abstract

The conventional model of immigrant earnings does not account for the correlation of outcomes across immigrant ethnic networks. We apply a spatial autoregressive network approach to account for the spill-over effects of migrant ethnic group economic resources and labour market outcomes. We employ unit-record data across 10 years for New Zealand, a major immigrant receiving country. By applying generalised method of moment (GMM) estimation, we address endogeneity of the spatial network variable. Results confirm strong positive associations of earnings with both ethnic concentration and networks of resources. The analytically enhanced approach provides opportunities for new research on the determinants of immigrant earnings.

Suggested Citation

  • Wang, Xingang & Maani, Sholeh A., 2021. "Ethnic Regional Networks and Immigrants' Earnings: A Spatial Autoregressive Network Approach," IZA Discussion Papers 14862, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14862
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    Keywords

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    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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