IDEAS home Printed from https://ideas.repec.org/p/trb/wpaper/2002.02.html
   My bibliography  Save this paper

Neighbourhood Effects, Preference Heterogeneity and Immigrant Educational Attainment

Author

Listed:
  • Buly A Cardak

    (School of Economics, La Trobe University)

  • James Ted McDonald

    (School of Economics, University of New Brunswick School of Economics, La Trobe University)

Abstract

This paper investigates differences between the educational attainment immigrants and native born individuals in Australia by using Australian Youth Survey (AYS) data combined with aggregate Australian Census data. We decompose differences in educational attainment into: (i) typical demographic and socio-economic sources common to all ethnic groups, (ii) unobserved region of residence and region of origin effects, and (iii) neighbourhood effects such as degree and ethnic concentration of particular ethnic groups in different neighbourhoods. A theoretical model incorporating these effects is proposed but structural estimation is not possible for lack of appropriate data. Instead, a reduced form methodology is proposed and employed. The empirical results identify positive ethnic neighbourhood effects in high school completion and university enrolment for some immigrants to Australia, in particular first and second generation immigrants from Asia. The results indicate that it is not just the size of the ethnic network but the quality of the network that is important.

Suggested Citation

  • Buly A Cardak & James Ted McDonald, 2002. "Neighbourhood Effects, Preference Heterogeneity and Immigrant Educational Attainment," Working Papers 2002.02, School of Economics, La Trobe University.
    • Handle: RePEc:trb:wpaper:2002.02
    as

    Download full text from publisher

    File URL: http://www.latrobe.edu.au/__data/assets/pdf_file/0006/130884/2002.02.pdf
    File Function: First version, 2002.02.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Chiswick, Barry R. & Miller, Paul W., 1994. "The determinants of post-immigration investments in education," Economics of Education Review, Elsevier, vol. 13(2), pages 163-177, June.
    2. Ira N. Gang & Klaus F. Zimmermann, 2000. "Is Child like Parent? Educational Attainment and Ethnic Origin," Journal of Human Resources, University of Wisconsin Press, vol. 35(3), pages 550-569.
    3. Julian R. Betts & Magnus Lofstrom, 2000. "The Educational Attainment of Immigrants: Trends and Implications," NBER Chapters, in: Issues in the Economics of Immigration, pages 51-116, National Bureau of Economic Research, Inc.
    4. Marianne Bertrand & Erzo F. P. Luttmer & Sendhil Mullainathan, 2000. "Network Effects and Welfare Cultures," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 1019-1055.
    5. Ira N. Gang, 1997. "Schooling, Parents and Country," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 66(1), pages 180-186.
    6. Cardak, B.A., 1998. "Preferences Over Education Expenditure," Department of Economics - Working Papers Series 623, The University of Melbourne.
    7. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
    8. Chiswick, Barry R & Miller, Paul M, 1996. "Ethnic Networks and Language Proficiency among Immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(1), pages 19-35, February.
    9. repec:bla:ecorec:v:75:y:1999:i:228:p:63-76 is not listed on IDEAS
    10. Barry R. Chiswick, 1988. "Differences in Education and Earnings Across Racial and Ethnic Groups: Tastes, Discrimination, and Investments in Child Quality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 103(3), pages 571-597.
    11. Paul W. Miller, 1995. "The Australian Longitudinal Survey and the Australian Youth Survey," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 28(1), pages 123-129, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lindvall, Lars, 2009. "Neighbourhoods, economic incentives and post compulsory education choices," Working Paper Series 2009:11, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    2. repec:pri:crcwel:wp11-11-ff is not listed on IDEAS
    3. Nieuwenhuis, Jaap & Hooimeijer, Pieter & van Ham, Maarten & Meeus, Wim, 2013. "Neighbourhood Effects on Migrant Youth's Educational Commitments: An Enquiry into Personality Differences," IZA Discussion Papers 7510, Institute of Labor Economics (IZA).
    4. Alexander M. Danzer & Hulya Ulku, 2008. "Determinants of Integration and Its Impact on the Economic Success of Immigrants: A Case Study of the Turkish Community in Berlin," Discussion Papers of DIW Berlin 833, DIW Berlin, German Institute for Economic Research.
    5. Siahaan, Freddy & Lee, Daniel Y. & Kalist, David E., 2014. "Educational attainment of children of immigrants: Evidence from the national longitudinal survey of youth," Economics of Education Review, Elsevier, vol. 38(C), pages 1-8.
    6. Derek Hum & Wayne Simpson, 2007. "The legacy of immigration: labour market performance and education in the second generation," Applied Economics, Taylor & Francis Journals, vol. 39(15), pages 1985-2009.
    7. Jessica Yiu, 2011. "The School Readiness of the Children of Immigrants in the United States: The Role of Families, Childcare and Neighborhoods," Working Papers 1314, Princeton University, School of Public and International Affairs, Center for Research on Child Wellbeing..
    8. Contreras, Ivette, 2023. "Following your lead: Migration networks and immigrants' education decisions," World Development, Elsevier, vol. 170(C).
    9. NONNEMAN, Walter, 2012. "School achievement and failure of immigrant children in Flanders," Working Papers 2012008, University of Antwerp, Faculty of Business and Economics.
    10. Klaus Nowotny & Dieter Pennerstorfer, 2011. "Ethnic Networks and the Location Choice of Migrants in Europe," WIFO Working Papers 415, WIFO.
    11. Changhui Kang, 2007. "Academic interactions among classroom peers: a cross-country comparison using TIMSS," Applied Economics, Taylor & Francis Journals, vol. 39(12), pages 1531-1544.
    12. Kelvin K. C. Seah, 2021. "Impact of Immigrant Peers on Native Students’ Achievement: Evidence from Australia, Canada and the United States," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(1), pages 94-116, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jens Ruhose, 2013. "Bildungsleistungen von Migranten und deren Determinanten – Teil II: Primar-, Sekundar- und Tertiärbereich," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 66(10), pages 24-38, May.
    2. Ira N. Gang & Klaus F. Zimmermann, 2000. "Is Child like Parent? Educational Attainment and Ethnic Origin," Journal of Human Resources, University of Wisconsin Press, vol. 35(3), pages 550-569.
    3. Chiswick, Barry R. & DebBurman, Noyna, 2004. "Educational attainment: analysis by immigrant generation," Economics of Education Review, Elsevier, vol. 23(4), pages 361-379, August.
    4. Sarit Cohen Goldner & Gil Epstein, 2014. "Age at immigration and high school dropouts," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-20, December.
    5. Anna-Elisabeth Thum, 2013. "Ethnic Identity and Educational Outcomes of German Immigrants and Their Children," SOEPpapers on Multidisciplinary Panel Data Research 622, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Julia Beckhusen & Raymond J.G.M. Florax & Thomas Graaff & Jacques Poot & Brigitte Waldorf, 2013. "Living and working in ethnic enclaves: English Language proficiency of immigrants in US metropolitan areas," Papers in Regional Science, Wiley Blackwell, vol. 92(2), pages 305-328, June.
    7. Carmen Aina & Giorgia Casalone & Paolo Ghinetti, 2008. "Internal Geographical Mobility And Educational Outcomes. An Analysis For An Italian Province," Working Papers 120, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
    8. Assar Lindbeck & Mårten Palme & Mats Persson, 2016. "Sickness Absence and Local Benefit Cultures," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(1), pages 49-78, January.
    9. 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.
    10. Verdier, Thierry & Zenou, Yves, 2017. "The role of social networks in cultural assimilation," Journal of Urban Economics, Elsevier, vol. 97(C), pages 15-39.
    11. Anna Damm & Michael Rosholm, 2010. "Employment effects of spatial dispersal of refugees," Review of Economics of the Household, Springer, vol. 8(1), pages 105-146, March.
    12. Teresa Casey & Christian Dustmann, 2008. "Intergenerational Transmission of Language Capital and Economic Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 4660-4687.
    13. Finnie, Ross & Meng, Ronald, 2006. "The Importance of Functional Literacy: Reading and Math Skills and Labour Market Outcomes of High School Drop-outs," Analytical Studies Branch Research Paper Series 2006275e, Statistics Canada, Analytical Studies Branch.
    14. Philipp Bauer & Regina Riphahn, 2006. "Education and its intergenerational transmission: country of origin-specific evidence for natives and immigrants from Switzerland," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 5(2), pages 89-110, August.
    15. Sweetman, A. & van Ours, J.C., 2014. "Immigration : What About the Children and Grandchildren?," Discussion Paper 2014-009, Tilburg University, Center for Economic Research.
    16. Francine D. Blau, 1992. "The Fertility of Immigrant Women: Evidence from High-Fertility Source Countries," NBER Chapters, in: Immigration and the Work Force: Economic Consequences for the United States and Source Areas, pages 93-134, National Bureau of Economic Research, Inc.
    17. Antecol, Heather & Kuhn, Peter J. & Trejo, Stephen, 2003. "Assimilation via Prices or Quantities? Labor Market Institutions and Immigrant Earnings Growth in Australia, Canada, and the United States," IZA Discussion Papers 802, Institute of Labor Economics (IZA).
    18. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    19. Nekby, Lena & Vilhelmsson, Roger & Özcan, Gülay, 2007. "Do Domestic Educations Even Out the Playing Field? Ethnic Labor Market Gaps in Sweden," Research Papers in Economics 2007:6, Stockholm University, Department of Economics.
    20. Riphahn, Regina, 2001. "Dissimilation? The Educational Attainment of Second Generation Immigrants," CEPR Discussion Papers 2903, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    Immigrants; Education; Neighbourhood Effects; Preference Heterogeneity;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:trb:wpaper:2002.02. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stephen Scoglio (email available below). General contact details of provider: https://edirc.repec.org/data/sblatau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.