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Do as the Neighbors Do: Examining the Effect of Residential Neighborhoods on Labor Market Outcomes

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  • Fredrik Andersson
  • Simon Burgess
  • Julia Lane

Abstract

This paper examines the effect of where immigrants live on their labor market outcomes. We provide robust evidence that both the number and the labor market activity of immigrants’ neighbors affect their employment. In particular, we demonstrate that immigrants are much more likely to be employed in the same firm as their geographic neighbors than are other immigrants. Copyright Springer Science+Business Media New York (outside the USA) 2014

Suggested Citation

  • Fredrik Andersson & Simon Burgess & Julia Lane, 2014. "Do as the Neighbors Do: Examining the Effect of Residential Neighborhoods on Labor Market Outcomes," Journal of Labor Research, Springer, vol. 35(4), pages 373-392, December.
    • Handle: RePEc:spr:jlabre:v:35:y:2014:i:4:p:373-392
    DOI: 10.1007/s12122-014-9188-2
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    14. Anna Piil Damm, 2009. "Ethnic Enclaves and Immigrant Labor Market Outcomes: Quasi-Experimental Evidence," Journal of Labor Economics, University of Chicago Press, vol. 27(2), pages 281-314, April.
    15. Katharine G. Abraham & John Haltiwanger & Kristin Sandusky & James R. Spletzer, 2013. "Exploring Differences in Employment between Household and Establishment Data," Journal of Labor Economics, University of Chicago Press, vol. 31(S1), pages 129-172.
    16. John M. Abowd & Bryce E. Stephens & Lars Vilhuber & Fredrik Andersson & Kevin L. McKinney & Marc Roemer & Simon Woodcock, 2009. "The LEHD Infrastructure Files and the Creation of the Quarterly Workforce Indicators," NBER Chapters, in: Producer Dynamics: New Evidence from Micro Data, pages 149-230, National Bureau of Economic Research, Inc.
    17. Fredrik Andersson & Mónica García-Pérez & John Haltiwanger & Kristin McCue & Seth Sanders, 2014. "Workplace Concentration of Immigrants," Demography, Springer;Population Association of America (PAA), vol. 51(6), pages 2281-2306, December.
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    Cited by:

    1. Aparicio Fenoll, Ainhoa & Kuehn, Zoë, 2018. "Immigrant networks and remittances: Cheaper together?," World Development, Elsevier, vol. 111(C), pages 225-245.
    2. Zenou, Yves & Biavaschi, Costanza & Giulietti, Corrado, 2021. "Social Networks and (Political) Assimilation in the Age of Mass Migration," CEPR Discussion Papers 16182, C.E.P.R. Discussion Papers.
    3. Matthieu Solignac & Maxime Tô, 2018. "Do Workers Make Good Neighbours? The Impact of Local Employment on Young Male and Female Entrants to the Labour Market," Annals of Economics and Statistics, GENES, issue 130, pages 167-198.
    4. Darja Reuschke & Donald Houston, 2016. "The importance of housing and neighbourhood resources for urban microbusinesses," European Planning Studies, Taylor & Francis Journals, vol. 24(6), pages 1216-1235, June.
    5. Eric Schuss, 2020. "Do Ethnic Networks Ameliorate Education–Occupation Mismatch?," LABOUR, CEIS, vol. 34(4), pages 441-476, December.

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    More about this item

    Keywords

    Employment networks; Residential networks; Linked employer-employee data; JEL Classification; J15; J61; J48;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy

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