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

Battisti, Michele and Peri, Giovanni and Romiti, Agnese (2016) Dynamic effects of co-ethnic networks on immigrants' economic success. NBER Working paper (22389).

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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.