Dynamic Effects of Co-Ethnic Networks on Immigrants' Economic Success

53 Pages Posted: 11 Jul 2016

See all articles by Michele Battisti

Michele Battisti

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Giovanni Peri

University of California, Davis - Department of Economics

Agnese Romiti

Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

Date Written: July 2016

Abstract

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.

Suggested Citation

Battisti, Michele and Peri, Giovanni and Romiti, Agnese, Dynamic Effects of Co-Ethnic Networks on Immigrants' Economic Success (July 2016). NBER Working Paper No. w22389. Available at SSRN: https://ssrn.com/abstract=2807700

Michele Battisti (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
Munich, 01069
Germany

Giovanni Peri

University of California, Davis - Department of Economics ( email )

One Shields Drive
Davis, CA 95616-8578
United States
530-752-3033 (Phone)
530-752-9382 (Fax)

Agnese Romiti

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

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