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Dynamic Effects of Co-Ethnic Networks on Immigrants’ Economic Success

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  • Michele Battisti
  • Giovanni Peri
  • Agnese Romiti

Abstract

In this paper we investigate how co-ethnic networks affect the economic success of immigrants. Using longitudinal data of immigrants in Germany and including a large set of fixed effects and pre-migration controls to address the possible endogeneity of initial location, we find that immigrants in districts with larger co-ethnic networks are more likely to be employed soon after arrival. This advantage fades after four years, as migrants located in places with smaller co-ethnic networks catch up due to greater human capital investments. These effects appear stronger for lower-skilled immigrants, as well as for refugees and ethnic Germans.

Suggested Citation

  • Michele Battisti & Giovanni Peri & Agnese Romiti, 2022. "Dynamic Effects of Co-Ethnic Networks on Immigrants’ Economic Success," The Economic Journal, Royal Economic Society, vol. 132(641), pages 58-88.
    • Handle: RePEc:oup:econjl:v:132:y:2022:i:641:p:58-88.
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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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