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

Battisti, M. , Perii, G. and Romitii, A. (2022) Dynamic effects of co-ethnic networks on immigrants' economic success. Economic Journal, 132(641), pp. 58-88. (doi: 10.1093/ej/ueab036)

Abstract

This paper investigates 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.

• Item Type: Articles
• Additional Information: Michele Battisti gratefully acknowledges financial support for this project by the Leibniz Association (SAW-2012-ifo-3).
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Battisti, Professor Michele
• Authors: Battisti, M., Perii, G., and Romitii, A.
• College/School: College of Social Sciences > Adam Smith Business School > Economics
• Journal Name: Economic Journal
• Publisher: Oxford University Press
• ISSN: 0013-0133
• ISSN (Online): 1468-0297
• Published Online: 27 April 2021
• Copyright Holders: Copyright © 2021 Royal Economic Society
• First Published: First published in Economic Journal 132(641): 58-88
• Publisher Policy: Reproduced in accordance with the copyright policy of the publisher