Affiliation:
1. Uppsala University, Uppsala
Abstract
This article estimates the causal effect of residential concentration of co-ethnics (ethnic enclaves) on the probability to start a business among refugees in Sweden. Results indicate that the share of self-employed co-ethnics in the port of entry municipality increases refugees’ probability of entry into self-employment, while the actual share of local co-ethnics has no effect or, in some cases, a negative effect. The results support the conclusion that skills and resources within the local ethnic enclave, particularly skills relevant for self-employment, are crucial for generating new entry into self-employment for refugees, while simply more co-ethnics, plausibly increasing an ethnic market’s size, are of less importance. Moreover, the results suggest that being placed with a larger share of self-employed co-ethnics is negatively related to refugees’ long-term disposable income; however, assuming there is no or little selection of high-ability refugees into self-employment, this negative relationship can be counteracted by the choice of self-employment. The study adds new knowledge on the arguably crucial topic of socio-economic integration of an important group of international migrants — namely, refugees.
Funder
European Research Council
Subject
Arts and Humanities (miscellaneous),Demography
Cited by
18 articles.
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