Neighbourhood Effects, Preference Heterogeneity and Immigrant Educational Attainment

La Trobe University School of Business Working Paper No. A02.02

31 Pages Posted: 21 Apr 2002

See all articles by Buly A. Cardak

Buly A. Cardak

La Trobe University - School of Economics

James Ted McDonald

affiliation not provided to SSRN

Date Written: October 2001

Abstract

This paper investigates differences between the educational attainment immigrants and native born individuals in Australia by using Australian Youth Survey (AYS) data combined with aggregate Australian Census data. We decompose differences in educational attainment into: (i) typical demographic and socio-economic sources common to all ethnic groups, (ii) unobserved region of residence and region of origin effects, and (iii) neighborhood effects such as degree and ethnic concentration of particular ethnic groups in different neighborhoods. A theoretical model incorporating these effects is proposed but structural estimation is not possible for lack of appropriate data. Instead, a reduced form methodology is proposed and employed. The empirical results identify positive ethnic neighborhood effects in high school completion and university enrollment for some immigrants to Australia, in particular first and second generation immigrants from Asia. The results indicate that it is not just the size of the ethnic network but the 'quality' of the network that is important.

Keywords: Immigrants, Education, Neighborhood Effects, Preference Heterogeneity

JEL Classification: C10, I20, J15, R23

Suggested Citation

Cardak, Buly and McDonald, James Ted, Neighbourhood Effects, Preference Heterogeneity and Immigrant Educational Attainment (October 2001). La Trobe University School of Business Working Paper No. A02.02, Available at SSRN: https://ssrn.com/abstract=306243 or http://dx.doi.org/10.2139/ssrn.306243

Buly Cardak (Contact Author)

La Trobe University - School of Economics ( email )

Bundoora
Bundoora, Victoria 3083 3086
Australia
+61 3 9479 3419 (Phone)
+61 3 9479 1654 (Fax)

James Ted McDonald

affiliation not provided to SSRN

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
101
Abstract Views
1,144
rank
330,956
PlumX Metrics