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Ethnic Networks and the Location Choice of Migrants in Europe

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  • Nowotny, Klaus

    (University of Salzburg)

  • Pennerstorfer, Dieter

    (Austrian Institute of Economic Research)

Abstract

This paper analyzes the role of ethnic networks in the location decision of migrants to the EU at the regional level. Using a random parameters logit specification we find a substantially positive effect of ethnic networks on the location decision of migrants. Furthermore, we find evidence of spatial spillovers in the effect of ethnic networks. Analyzing the trade-off between potential income and network size, we find that migrants would require a sizable compensation for living in a region with a smaller ethnic network, especially when considering regions where only few previous migrants from the same country of origin are located.

Suggested Citation

  • Nowotny, Klaus & Pennerstorfer, Dieter, 2012. "Ethnic Networks and the Location Choice of Migrants in Europe," Working Papers in Economics 2012-7, University of Salzburg.
    • Handle: RePEc:ris:sbgwpe:2012_007
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    2. Laszlo Lorincz & Brigitta Nemeth, 2019. "Network Effects in Internal Migration," CERS-IE WORKING PAPERS 1913, Institute of Economics, Centre for Economic and Regional Studies.
    3. Dieter Pennerstorfer, 2011. "FAMO – Fachkräftemonitoring. Regelmäßige Erhebung des Angebots und des Bedarfs an Fachkräften in der Grenzregion Ostösterreichs mit der Slowakei. FAMO II: Immigration und Spillover-Effekte als Bestimm," WIFO Studies, WIFO, number 42873.
    4. Klaus Nowotny, 2011. "Welfare Magnets, Taxation and the Location Decisions of Migrants to the EU," WIFO Working Papers 393, WIFO.
    5. Dieter Pennerstorfer, 2011. "Export, Migration, and Costs of Market Entry: Evidence from Central European Firms," WIFO Working Papers 405, WIFO.
    6. Benjamin Furlan & Harald Oberhofer & Hannes Winner, 2016. "A note on merger and acquisition evaluation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(3), pages 447-455.
    7. Julia Bredtmann & Klaus Nowotny & Sebastian Otten, 2017. "Linguistic Distance, Networks and Migrants’ Regional Location Choice," RF Berlin - CReAM Discussion Paper Series 1712, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    8. Bredtmann, Julia & Nowotny, Klaus & Otten, Sebastian, 2020. "Linguistic distance, networks and migrants’ regional location choice," Labour Economics, Elsevier, vol. 65(C).
    9. Sascha Sardadvar & Silvia Rocha-Akis, 2016. "Interregional migration within the European Union in the aftermath of the Eastern enlargements: a spatial approach," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 36(1), pages 51-79, February.
    10. Rathner, Sebastian, 2013. "The Relative Performance of Socially Responsible Investment Funds. New Evidence from Austria," Working Papers in Economics 2013-1, University of Salzburg.

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    More about this item

    Keywords

    network migration; ethnic networks; random parameters logit;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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