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Ethnic Enclaves, Self-Employment and the Economic Performance of Refugees

Henrik Andersson ()
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Henrik Andersson: Department of Economics and Institute for Housing and Urban Research (IBF), Uppsala

No 2018:7, Working Paper Series from Uppsala University, Department of Economics

Abstract: In this paper I estimate the causal effect of ethnic enclaves on the probability of self-employment. To account for neighborhood selection I make use of a refugee dispersal program. Results indicate that larger ethnic enclaves, measured as the share of self-employed coethnics in the municipality immigrants first arrive into, effects the probability of self-employment positively, while the share of all other coethnics has a negative effect. Results however also indicate that there is a long term economic penalty to being placed with a larger share of self-employed coethnics, an effect which is partly mediated through the choice of selfemployment.

Keywords: Immigration; Self-employment; Sweden; Foreign born; Ethnic Enclaves; Coethnics (search for similar items in EconPapers)
JEL-codes: C21 J15 M13 R23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent, nep-mig and nep-ure
Date: 2018-03-18
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:uunewp:2018_007

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