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Ethnic enclaves and immigrant labour market outcomes: quasi-experimental evidence

Piil Damm, A.; (2006) Ethnic enclaves and immigrant labour market outcomes: quasi-experimental evidence. (Discussion Paper Series 07/06). Centre for Research and Analysis of Migration: London, UK. Green open access

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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.

Type: Working / discussion paper
Title: Ethnic enclaves and immigrant labour market outcomes: quasi-experimental evidence
Open access status: An open access version is available from UCL Discovery
Publisher version: http://www.econ.ucl.ac.uk/cream/publicationsdiscus...
Language: English
URI: https://discovery.ucl.ac.uk/id/eprint/14297
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