%0 Generic
%A Piil Damm, A.
%C London, UK
%D 2006
%F discovery:14297
%I Centre for Research and Analysis of Migration
%N 07/06
%T Ethnic enclaves and immigrant labour market outcomes: quasi-experimental evidence
%U https://discovery.ucl.ac.uk/id/eprint/14297/
%X 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.