Ethnic Enclaves and the Economic Success of Immigrants - Evidence from a Natural Experiment

Per-Anders Edin, Olof Åslund and Peter Fredriksson

No 2729, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Recent immigrants tend to locate in ethnic ?enclaves? within metropolitan areas. The economic consequence of living in such enclaves is still an unresolved issue. We use an immigrant policy initiative in Sweden, when government authorities distributed refugee immigrants across locales in a way that may be considered exogenous. This policy initiative provides a unique natural experiment, which allows us to estimate the causal effect on labour market outcomes of living in enclaves. We find substantive evidence of sorting across locations. When sorting is taken into account, living in enclaves improves labour market outcomes; for instance, the earnings gain associated with a standard deviation increase in ethnic concentration is in the order of 4?5%.

Keywords: Enclaves; Labour market outcomes; Immigration (search for similar items in EconPapers)
JEL-codes: J15 J18 R23 (search for similar items in EconPapers)
Date: 2001-03
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Citations: View citations in EconPapers (73)

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Related works:
Journal Article: Ethnic Enclaves and the Economic Success of Immigrants—Evidence from a Natural Experiment (2003)
Working Paper: Ethnic enclaves and the economic success of immigrants - evidence from a natural experiment (2000)
Working Paper: Ethnic Enclaves and the Economic Success of Immigrants - Evidence from a Natural Experiment (2000)
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