Ethnic Segregation and Immigrants’ Labor Market Outcomes: The Role of Education

Lou Tian () and Song Tao
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Lou Tian: Ohio Education Research Center, John Glenn College of Public Affairs, The Ohio State University, CHRR at The Ohio State University, 921 Chatham Lane, Suite 200, Columbus, OH 43211, United States
Song Tao: Department of Economics, Sewanee: The University of the South, 735 University Avenue, Sewanee, TN 37383, United States

IZA Journal of Labor Economics, 2023, vol. 12, issue 1, 41

Abstract: Given the conflicting findings about whether ethnic segregation benefits or hurts immigrants’ labor market outcomes in the existing literature, this paper investigates how segregation effects vary within young immigrants’ education levels. We also test the differential segregation effects for young immigrants with different education levels and from ethnic groups with different average education levels. We find that on average, ethnic segregation negatively impacts earnings of highly educated immigrants but benefits lower educated immigrants. Additionally, the net effects of ethnic segregation depend on whether immigrants’ own education levels match their group average education levels. Specifically, being segregated with many highly educated co-ethnics can reverse the negative segregation effects on highly educated immigrants’ earnings. However, a highly educated ethnic enclave can reduce the positive isolation effects for lower educated immigrants. Finally, we do not find significant segregation effects on immigrants’ employment.

Keywords: Immigrants; Segregation; Labor market outcomes; Ethnic enclaves (search for similar items in EconPapers)
JEL-codes: J15 J24 J31 J61 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:izajle:v:12:y:2023:i:1:p:41:n:1

DOI: 10.2478/izajole-2023-0005

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