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Let’s stick together: Labor market effects from immigrant neighborhood clustering

Author

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  • José Lobo

    (School of Sustainability, Arizona State University, USA)

  • Charlotta Mellander

Abstract

We investigate if there are positive economic effects for individuals residing in ethnic neighborhoods, in particular if the likelihood of labor market participation among foreign-born is affected by residentially aggregating with other people from one’s same native region. We also examine to what extent the income level among foreign-born who have a job is affected by the extent to which they congregate in ethnic enclaves. We use Swedish micro-level data for the time period 2007 to 2015 and run a Heckman estimation for four distinct immigration groups: those from (a) the Middle East; poor and middle-income countries in (b) Africa and (c) Asia; and (d) and those from the former Yugoslavia. We control for personal and neighborhood characteristics as well as workplace characteristics. The results suggest that, in some cases, there may be positive effects from ethnic concentration, but even more from living with first- and second-generation immigrants in general.

Suggested Citation

  • José Lobo & Charlotta Mellander, 2020. "Let’s stick together: Labor market effects from immigrant neighborhood clustering," Environment and Planning A, , vol. 52(5), pages 953-980, August.
    • Handle: RePEc:sae:envira:v:52:y:2020:i:5:p:953-980
    DOI: 10.1177/0308518X19896521
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    More about this item

    Keywords

    Labor market participation; foreign-born; immigration; clustering effects; income levels; JEL: J15; J31; R23;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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