Scandinavian Working Papers in Economics
Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy
No 2000:9: Ethnic enclaves and the economic success of immigrants - evidence from a natural experiment
Per-Anders Edin (), Peter Fredriksson () and Olof Åslund
Additional contact information
Per-Anders Edin: IFAU - Office of Labour Market Policy Evaluation, Postal: Labour Market Policy Evaluation, P O Box 513, SE-751 20 Uppsala, Sweden
Peter Fredriksson: IFAU - Office of Labour Market Policy Evaluation, Postal: Labour Market Policy Evaluation, P O Box 513, SE-751 20 Uppsala, Sweden
Olof Åslund: IFAU - Office of Labour Market Policy Evaluation, Postal: Labour Market Policy Evaluation, P O Box 513, SE-751 20 Uppsala, Sweden
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
37 pages, December 8, 2000
Full text files
wp00-9.pdf
- Published as
- Per-Anders Edin, 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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