Dynamic Effects of Co-Ethnic Networks on Immigrants' Economic Success

14 December 2017
14 December 2017
Contatti: 
Doctoral School of Social Sciences
via Verdi 26, 38122 - Trento
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+39 0461 283756 - 2290
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+39 0461 282335

Skype: school.socialsciences

Hour: 2 p.m. 
Venue: Seminar Room, Department of Economics and Management, via Inama 5

Speaker:

Abstract

This paper investigates how the size of co-ethnic networks at arrival affected the economic success of immigrants in Germany.
Applying panel analysis with a large set of fixed effects and controls, we isolate the association between initial network size and long-run immigrant outcomes.
Focusing on those who were assigned to an initial location independently of their choice allows a causal interpretation of the estimated coefficient.
We find that immigrants initially located in places with larger co-ethnic networks are more likely to be employed at first, but have a lower probability of investing in human capital. In the long run they are more likely to be mis-matched in their job and to earn a lower wage.

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