Working Papers, Department of Economics, Aarhus School of Business, University of Aarhus
No 06-4:
Ethnic Enclaves and Immigrant Labour Market Outcomes: Quasi-Experimental Evidence.
Anna Piil Damm ()
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
heterogeneous treatment effects, the estimated effects are
local average treatment effects
Keywords: Ethnic Enclaves; Employment; Earnings; LATE; (follow links to similar papers)
JEL-Codes: C35; J15; J64; Z13; (follow links to similar papers)
54 pages, September 27, 2006
Published as “Ethnic Enclaves and Immigrant Labor Market Outcomes: Quasi-Experimental Evidence”. Journal of Labor Economics 2009, 27(2): 281-314.
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