Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71867
Authors: 
Nowotny, Klaus
Pennerstorfer, Dieter
Year of Publication: 
2012
Series/Report no.: 
Working Papers in Economics and Finance, University of Salzburg 2012-07
Abstract: 
This paper analyzes the role of ethnic networks in the location decision of migrants to the EU at the regional level. Using a random parameters logit specification we find a substantially positive effect of ethnic networks on the location decision of migrants. Furthermore, we find evidence of spatial spillovers in the effect of ethnic networks. Analyzing the trade-off between potential income and network size, we find that migrants would require a sizable compensation for living in a region with a smaller ethnic network, especially when considering regions where only few previous migrants from the same country of origin are located.
Subjects: 
Network migration
ethnic networks
random parameters logit
JEL: 
F22
R23
C35
Document Type: 
Working Paper

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