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The spatial extent of network externalities in international migration

Roberto Basile () and Francesca Licari ()
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Roberto Basile: Department of Industrial and Information Engineering and Economics. University of L'Aquila
Francesca Licari: Italian National Institute of Statistics (ISTAT)

No 2020-02, Discussion Paper series in Regional Science & Economic Geography from Gran Sasso Science Institute, Social Sciences

Abstract: In this paper, we assess the effect of community networks on the location choice of foreign immigrants in Italy. Our results confirm the existence of strong network externalities, but they also suggest that these effects spill over the borders of local labor markets areas (LLMAs). Significant positive spatial spillovers are indeed evident up to the second-order of contiguity, while a negative (spatial competition) effect emerges at the third-order. A possible channel for the generation of these spatial spillovers is the existence of common markets for unskilled and ethnic-specific jobs.

Keywords: Community networks; Immigration; Gravity models; Spatial dependence (search for similar items in EconPapers)
JEL-codes: F22 J61 R23 C14 C21 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2020-05, Revised 2020-05
New Economics Papers: this item is included in nep-eur, nep-geo, nep-int, nep-lab, nep-mig, nep-net, nep-ore, nep-soc and nep-ure
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