Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy
Ethnic enclaves and the economic success of immigrants - evidence from a natural experiment
(), Peter Fredriksson
() and Olof Åslund
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 labor market outcomes of living in enclaves.
We find substantive evidence of sorting across locations. When sorting is
taken into account, living in enclaves improves labor market outcomes; for
instance, the earnings gain associated with a standard deviation increase
in ethnic concentration is in the order of four to five percent.
Keywords: Immigration; Enclaves; Labor market outcomes; (follow links to similar papers)
JEL-Codes: J15; J18; R23; (follow links to similar papers)
37 pages, December 8, 2000
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- This paper is published as:
Edin, Per-Anders, Peter Fredriksson and Olof Åslund, (2003), 'Ethnic enclaves and the economic success of immigrants - evidence from a natural experiment', Quarterly Journal of Economics, Vol. 118, No. 1, pages 329-357
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