Ethnic Enclaves and Immigrant Labor Market Outcomes: Quasi‐Experimental Evidence

  title={Ethnic Enclaves and Immigrant Labor Market Outcomes: Quasi‐Experimental Evidence},
  author={Anna Piil Damm},
  journal={Journal of Labor Economics},
  pages={281 - 314}
  • Anna Piil Damm
  • Published 1 April 2009
  • Economics
  • Journal of Labor Economics
I examine the effects of the ethnic enclave size on labor market outcomes of immigrants. I account for ability sorting into enclaves by exploiting a Danish spatial dispersal policy under which refugees were randomly dispersed across locations. First, I find strong evidence that refugees with unfavorable unobserved characteristics self‐select into ethnic enclaves. Second, a relative standard deviation increase in the ethnic enclave size increases annual earnings by 18% on average, irrespective… 
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