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

Anna Piil Damm ()

No 06-4, Working Papers from University of Aarhus, Aarhus School of Business, Department of Economics

Abstract: This study investigates empirically how residence in ethnic enclaves affects labour market

outcomes of refugees. Self-selection into ethnic enclaves in terms of unobservable characteristics

is taken into account by exploitation of a Danish spatial dispersal policy which randomly

disperses new refugees across locations conditional on six individual-specific characteristics.

The results show that refugees with unfavourable unobserved characteristics are found to

self-select into ethnic enclaves. Furthermore, taking account of negative self-selection, a relative

standard deviation increase in ethnic group size on average increases the employment probability

of refugees by 4 percentage points and earnings by 21 percent. I argue that in case of

heterogeneous treatment effects, the estimated effects are local average treatment effects

Keywords: Ethnic Enclaves; Employment; Earnings; LATE (search for similar items in EconPapers)
JEL-codes: C35 J15 J64 Z13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab and nep-ure
Date: 2006-09-27
View list of references View citations in EconPapers

Downloads: (external link)
http://www.hha.dk/nat/wper/06-4_apd.pdf (application/pdf)

Related works:
Working Paper: Ethnic Enclaves and Immigrant Labour Market Outcomes: Quasi-Experimental Evidence (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Access Statistics for this paper

More papers in Working Papers from University of Aarhus, Aarhus School of Business, Department of Economics
Address: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Contact information at EDIRC.
Series data maintained by Helle Vinbaek Stenholt ().