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Getting the first job: Size and quality of ethnic enclaves and refugee labor market entry
Jönköping University, Jönköping International Business School, JIBS, Economics. Jönköping University, Jönköping International Business School, JIBS, Centre for Entrepreneurship and Spatial Economics (CEnSE).ORCID iD: 0000-0001-8752-0428
Jönköping University, Jönköping International Business School, JIBS, Economics. Jönköping University, Jönköping International Business School, JIBS, Centre for Entrepreneurship and Spatial Economics (CEnSE). Department of Land Economy, University of Cambridge, Cambridge, UK; Research Institute of Industrial Economics, Stockholm, Sweden.ORCID iD: 0000-0001-9590-8019
Johannes Kepler University Linz, Linz, Austria.ORCID iD: 0000-0002-6191-4397
2021 (English)In: Journal of regional science, ISSN 0022-4146, E-ISSN 1467-9787, Vol. 61, no 1, p. 112-139Article in journal (Refereed) Published
Abstract [en]

We analyze the relationship between residence in an ethnic enclave and immigrants' labor market integration with respect to finding a first job in the receiving country. The analysis distinguishes between the size and the quality of the ethnic enclaves, where quality is measured in terms of employment rate among ethnic peers in the same neighborhood. We use longitudinal geo-coded registry data for two distinct groups of immigrants arriving in the Stockholm metropolitan area to investigate their initial labor market contact. The first group of immigrants moved from the Balkans in the early 1990s following the Yugoslavian war, and the second group arrived from the Middle East following the second Iraq War in 2006. We estimate the probability of finding a first job using probit regressions and complement the analysis with additional duration models. To draw causal inference, we use instrumentation that combines initial neighborhood variables with citywide variation over time. We provide empirical evidence that the employment rate of the respective immigrant group in the vicinity facilitates labor market integration of new immigrants. The influences of the overall employment rate and the share of conationals in the neighborhood tend to be positive, but less robustly so. Our results are consistent with the notion that the qualitative nature of an enclave is at least as important as the sheer number of ethnic peers in helping new immigrants find jobs.

Place, publisher, year, edition, pages
John Wiley & Sons, 2021. Vol. 61, no 1, p. 112-139
Keywords [en]
ethnic enclave quality, labor market outcomes, refugee immigrants
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-50235DOI: 10.1111/jors.12504ISI: 000541844600001Scopus ID: 2-s2.0-85087175312Local ID: HOA;intsam;1458273OAI: oai:DiVA.org:hj-50235DiVA, id: diva2:1458273
Funder
Forte, Swedish Research Council for Health, Working Life and Welfare, 2019-01320Available from: 2020-08-14 Created: 2020-08-14 Last updated: 2021-12-19Bibliographically approved

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Klaesson, JohanÖner, Özge

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