Abstract
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 language | English |
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Pages (from-to) | 58-88 |
Number of pages | 31 |
Journal | Economic Journal |
Volume | 132 |
Issue number | 641 |
Early online date | 27 Apr 2021 |
DOIs | |
Publication status | Published - 7 Jan 2022 |
Keywords
- networks
- immigrants
- economic integration
- human capital
- employment