Ethnic Enclaves and Immigrant Labor Market Outcomes: Quasi-Experimental Evidence

Anna Piil Damm ()

Journal of Labor Economics, 2009, vol. 27, issue 2, pages 281-314

Abstract: I examine the effects of the ethnic enclave size on labor market outcomes of immigrants. I account for ability sorting into enclaves by exploiting a Danish spatial dispersal policy under which refugees were randomly dispersed across locations. First, I find strong evidence that refugees with unfavorable unobserved characteristics self-select into ethnic enclaves. Second, a relative standard deviation increase in the ethnic enclave size increases annual earnings by 18% on average, irrespective of skill level. Third, further findings are consistent with the explanation that ethnic networks disseminate job information, which increases the job-worker match quality and thereby the hourly wage rate. (c) 2009 by The University of Chicago.

Date: 2009
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Working Paper: Ethnic Enclaves and Immigrant Labour Market Outcomes: Quasi-Experimental Evidence (2006)
Working Paper: Ethnic Enclaves and Immigrant Labour Market Outcomes: Quasi-Experimental Evidence (2006)
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