Dynamic Effects of Co-Ethnic Networks on Immigrants' Economic Success
This paper investigates how the size of co-ethnic networks at the time of arrival affect 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. we also look at those who were assigned to an initial location independently of their choice allows a causal interpretation of our estimates. 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.
The authors would like to thank seminar participants at the Ifo Institute in Munich, University of Arizona, University of Innsbruck, University of Passau, University of Bergen, University of Bielefeld, Copenhagen Business School, IAB Nuremberg, DIW, as well as conference participants at the 2016 AIEL, 2016 IZA Annual Migration Meeting, 2016 EALE, 2016 ESPE and 2015 SAEe Conferences. Michele Battisti gratefully acknowledges financial support for this project by the Leibniz Association (SAW-2012-ifo-3). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Michele Battisti & Giovanni Peri & Agnese Romiti, 2022. "Dynamic Effects of Co-Ethnic Networks on Immigrants’ Economic Success," The Economic Journal, vol 132(641), pages 58-88. citation courtesy of