Ethnic Networks and the Location Choice of Migrants in Europe

Klaus Nowotny and Dieter Pennerstorfer

No 415, WIFO Working Papers from WIFO

Abstract: In this paper we analyse the role of ethnic networks in the location decision of migrants to the EU 15 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. The effect is, however, decreasing in network size. Furthermore, we find evidence of spatial spillovers in the effect of ethnic networks: ethnic networks in neighbouring regions significantly help to explain migrants' choice of target regions. The positive effects of ethnic networks thus also extend beyond regional and national borders. Analysing the trade-off between potential income and network size, we find that migrants would require a sizeable 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.

Keywords: ethnic networks; network migration; random parameters (search for similar items in EconPapers)
Pages: 45 pages
Date: 2011-12
New Economics Papers: this item is included in nep-dem, nep-eur, nep-geo, nep-mig, nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Related works:
Working Paper: Ethnic Networks and the Location Choice of Migrants in Europe (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:wfo:wpaper:y:2011:i:415

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