Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 1256: Getting the First Job – Size and Quality of Ethnic Enclaves for Refugee Labor Market Entry

Özge Öner () and Johan Klaesson ()
Additional contact information
Özge Öner: University of Cambridge, Postal: and Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Johan Klaesson: Jönköping University, Postal: and Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden

Abstract: This article analyses the relationship between the size and the quality of ethnic enclaves on immigrants’ labour market integration. Using exogenously defined grid cells to delineate neighbourhoods we find robust empirical evidence that the employment rate of the respective immigrant group in the vicinity (as a measure of enclave quality) facilitates labour market integration of new immigrants. The influence of the overall employment rate and the share of co-nationals in the neighbourhood tend to be positive, but less robust. We thus conclude that the quality is more important than the size of the ethnic enclave in helping new immigrants finding jobs.

Keywords: Refugee immigrants; Ethnic enclave quality; Labor market outcomes

JEL-codes: F22; J15; J60; R23

25 pages, December 5, 2018

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