Working Paper: NBER ID: w22389
Authors: Michele Battisti; Giovanni Peri; Agnese Romiti
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: coethnic networks; immigrants; economic success; Germany
JEL Codes: J24; J61; R23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| initial network size (D85) | likelihood of human capital investment (J24) |
| initial network size (D85) | likelihood of finding employment (J68) |
| likelihood of finding employment (J68) | long-term human capital investment (J24) |
| initial network size (D85) | long-term wages (J31) |