Ethnic Networks and the Location Choice of Migrants in Europe

Arbeitspapier

In this paper we analyse the role of ethnic networks in the location decision of migrants to the EU 15 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. The effect is, however, decreasing in network size. Furthermore, we find evidence of spatial spillovers in the effect of ethnic networks: ethnic networks in neighbouring regions significantly help to explain migrants' choice of target regions. The positive effects of ethnic networks thus also extend beyond regional and national borders. Analysing the trade-off between potential income and network size, we find that migrants would require a sizeable 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WIFO Working Papers ; No. 415

Classification and Topics

• Classification: Wirtschaft
• Subject: network migration ; ethnic networks ; random parameters ; Kulturelle Identität ; Migranten ; Wohnstandortwahl ; Ethnische Gruppe ; EU-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Nowotny, Klaus ; Pennerstorfer, Dieter
• Event: Veröffentlichung
• (who): Austrian Institute of Economic Research (WIFO)
• (where): Vienna
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/128949
• Last update: 10.03.2025, 11:44 AM CET