Immigrant Ethnic Enclaves: Causes and Consequences

Abstract

This chapter delves into the enduring and expanding presence of immigrant ethnic enclaves in the contemporary world. It examines their distinctive implications for both immigrants and natives within the labor market through a comprehensive survey of the existing literature in the social sciences, with a focus on research in economics. This chapter first introduces the theoretical framework to elucidate the formation and repercussions of these enclaves. Subsequently, empirical evidence is presented, shedding light on the labor market ramifications encompassing immigrants’ earnings, employment outcomes, and the socio-economic assimilation of second-generation immigrants. Furthermore, the chapter explores the influence of natives’ residential decisions when confronted with the emergence of immigrant ethnic enclaves, revealing how these choices may reinforce the enclaves and their effects.