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

43 Pages Posted: 21 Jul 2018

See all articles by Michele Battisti

Michele Battisti

University of Palermo; LUISS Guido Carli University

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: June 06, 2018

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.

Keywords: networks, immigration, human capital, employment

JEL Classification: J240, J610, R230

Suggested Citation

Battisti, Michele and Peri, Giovanni and Romiti, Agnese, Dynamic Effects of Co-Ethnic Networks on Immigrants' Economic Success (June 06, 2018). CESifo Working Paper Series No. 7084. Available at SSRN: https://ssrn.com/abstract=3214412

Michele Battisti (Contact Author)

University of Palermo ( email )

Viale delle Scienza
Palermo, 90128
Italy

LUISS Guido Carli University ( email )

Via O. Tommasini 1
Rome, Roma 00100
Italy

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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