ETHNIC ENCLAVES AND LABOR MARKETS: AN ANALYSIS OF IMMIGRANT OUTCOMES IN CALIFORNIA

doi:10.1111/j.1465-7287.2006.00020.x

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Wiley InterScience

Contemporary Economic Policy

Volume 25 Issue 2, Pages 238 - 249

Published Online: 24 Jan 2007

A Journal of the Western Economic Association International

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ETHNIC ENCLAVES AND LABOR MARKETS: AN ANALYSIS OF IMMIGRANT OUTCOMES IN CALIFORNIA

MUSSADDEQ CHOWDHURY ¹ and ROBERTO PEDACE ^2,*

¹ Chowdhury: Professor, Department of Economics, University of Redlands, Redlands, CA. E-mail: mussaddeq_chowdhury@redlands.edu
² Pedace: Director, Executive Management Program and Associate Professor, Peter F. Drucker and Masatoshi Ito Graduate School of Management, Claremont Graduate University, Claremont, CA. E-mail: roberto.pedace@cgu.edu

*This is a revision of a paper presented at the 79th Annual Conference of the Western Economic Association International, Vancouver, July 2004, in a session organized by Jack Hou, California State University, Long Beach. The authors thank Matthew Lang for excellent research assistance and two anonymous referees for their insightful comments. Bruce Brown, Rachel Franklin, and Don Mar also provided valuable feedback.

ABSTRACT

The goal of this article is to examine how immigrant enclaves influence labor market outcomes. We examine the effect of ethnic concentrations on earnings in the state of California. Individual-level wage equations that control for several observable human capital and demographic characteristics are estimated. In addition, we introduce a measure that captures an ethnic group's proportion of the metropolitan area population. In general, we find that any potentially positive enclave effects are likely to be offset by negative labor market competition effects. In particular, most enclave effects become insignificant after controlling for metro area–specific effects. (JEL J61, J31)

Advance Access publication July 24, 2006

DIGITAL OBJECT IDENTIFIER (DOI)

10.1111/j.1465-7287.2006.00020.x About DOI