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Ethnic Networks and the Location Choice of Migrants in Europe

  • Nowotny, Klaus

    ()

    (University of Salzburg)

  • Pennerstorfer, Dieter

    ()

    (Austrian Institute of Economic Research)

This paper analyzes the role of ethnic networks in the location decision of migrants to the EU at the regional level. Using a random parameters logit specification we find a substantially positive effect of ethnic networks on the location decision of migrants. Furthermore, we find evidence of spatial spillovers in the effect of ethnic networks. Analyzing the trade-off between potential income and network size, we find that migrants would require a sizable compensation for living in a region with a smaller ethnic network, especially when considering regions where only few previous migrants from the same country of origin are located.

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Paper provided by University of Salzburg in its series Working Papers in Economics and Finance with number 2012-7.

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Length: 46 pages
Date of creation: 03 Sep 2012
Date of revision:
Handle: RePEc:ris:sbgwpe:2012_007
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