Does Residence in an Ethnic Community Help Immigrants in a Recession?

47 Pages Posted: 21 Mar 2013

See all articles by Pengyu Zhu

Pengyu Zhu

Boise State University - College of Business & Economics

Cathy Yang Liu

Georgia State University - Andrew Young School of Policy Studies

Gary Painter

University of Southern California - Sol Price School of Public Policy

Date Written: March 1, 2013

Abstract

Research on how the residential segregation of immigrant populations has impacted their labor market outcomes presents many challenges because of the fact that immigrants often choose to locate near co-ethnics to share resources and cultural amenities. Because not all immigrants choose to live in these ethnic communities, identification of a causal effect on living in an ethnic community is difficult. The estimation of an effect of living in these ethnic communities is also difficult because it is ambiguous whether such residence will help or harm the labor market outcomes of immigrants. This study implements a number of approaches to help identify a causal effect, including using sample of adults whose residential location is plausibly exogenous with respect to their labor market outcomes and using the current recession as a source of exogenous variation. Results suggest that residence in an ethnic community after the recession increases the likelihood of working, albeit with longer commutes.

Suggested Citation

Zhu, Pengyu and Liu, Cathy Yang and Painter, Gary, Does Residence in an Ethnic Community Help Immigrants in a Recession? (March 1, 2013). Andrew Young School of Policy Studies Research Paper Series No. 13-06. Available at SSRN: https://ssrn.com/abstract=2235830 or http://dx.doi.org/10.2139/ssrn.2235830

Pengyu Zhu

Boise State University - College of Business & Economics ( email )

United States

Cathy Yang Liu (Contact Author)

Georgia State University - Andrew Young School of Policy Studies ( email )

Andrew Young School of Policy Studies
Atlanta, GA 30303-3083
United States

Gary Painter

University of Southern California - Sol Price School of Public Policy ( email )

Los Angeles, CA 90089-0626
United States
213-740-8754 (Phone)
213-740-0001 (Fax)

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