Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/36126
Authors: 
Danzer, Alexander M.
Yaman, Firat
Year of Publication: 
2010
Series/Report no.: 
IZA Discussion Papers 4742
Abstract: 
Studies that investigate the effect of the regional ethnic composition on immigrant outcomes have been complicated by the self-selection of ethnic minorities into specific neighbourhoods. We analyse the impact of own-ethnic concentration on the language proficiency of immigrants by exploiting the fact that the initial placement of guest-workers after WWII was determined by labour demanding firms and the federal labour administration and hence exogenous to immigrant workers. Combining several data sets, we find a small but robust and significant negative effect of ethnic concentration on immigrants' language ability. Simulation results of a choice model in which location and learning decisions are taken simultaneously confirm the presence of the effect. Immigrants with high learning costs are inclined to move to ethnic enclaves, so that the share of German-speakers would increase only modestly even under the counterfactual scenario of a regionally equal distribution of immigrants across Germany.
Subjects: 
Enclave
ethnic concentration
language proficiency
immigrants
instrumental variable
random utility model
JEL: 
J61
R23
F22
Document Type: 
Working Paper

Files in This Item:
File
Size
337.59 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.