@misc{discovery14297, year = {2006}, publisher = {Centre for Research and Analysis of Migration}, number = {07/06}, month = {August}, series = {Discussion Paper Series}, title = {Ethnic enclaves and immigrant labour market outcomes: quasi-experimental evidence}, address = {London, UK}, author = {Piil Damm, A.}, url = {http://www.econ.ucl.ac.uk/cream/publicationsdiscussionpapers.htm}, 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 heterogenous treatment effects, the estimated effects are local average treatment effects.} }