Dynamic effects of co-ethnic networks on immigrants' economic success

Michele Battisti, Giovanni Peri, Agnese Romiti

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13 Citations (Scopus)
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In this paper we investigate how co-ethnic networks affect the economic success of immigrants. Using longitudinal data of immigrants in Germany and including a large set of fixed effects and pre-migration controls to address the possible endogeneity of initial location, we find that immigrants in districts with larger co-ethnic networks are more likely to be employed soon after arrival. This advantage fades after four years, as migrants located in places with smaller co-ethnic networks catch up due to greater human capital investments. These effects appear stronger for lower-skilled immigrants, as well as for refugees and ethnic Germans.

Original languageEnglish
Pages (from-to)58-88
Number of pages31
JournalEconomic Journal
Issue number641
Early online date27 Apr 2021
Publication statusPublished - 7 Jan 2022


  • networks
  • immigrants
  • economic integration
  • human capital
  • employment


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