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

Anna Damm ()

No 607, CReAM Discussion Paper Series from Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London

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 heterogenous treatment effects, the estimated effects are local average treatment effects.

Keywords: Migration (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mig and nep-ure
Date: 2006-08
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Related works:
Journal Article: Ethnic Enclaves and Immigrant Labor Market Outcomes: Quasi-Experimental Evidence (2009) Downloads
Working Paper: Ethnic Enclaves and Immigrant Labour Market Outcomes: Quasi-Experimental Evidence (2006) Downloads
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