%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.
%I Centre for Research and Analysis of Migration
%D 2006
%L discovery14297
%T Ethnic enclaves and immigrant labour market outcomes: quasi-experimental evidence
%N 07/06
%S Discussion Paper Series
%C London, UK
%A A. Piil Damm