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Neighbourhood Ethnic Composition And Employment Effects On Immigrant Incomes, Roger Andersson, Sako Musterd, George C. Galster

Urban Studies and Planning Faculty Research Publications

Currently in many Western countries there are concerns that clustering of ethnic minorities in certain parts of cities will negatively affect integration processes. Scholarly theory and evidence on this point is mixed, however. We use Swedish data and conduct a panel analysis quantifying the degree to which the ethnic composition of the neighbourhood affects the subsequent labour income of individuals for the 1991 to 2006 period. We employ a fixed effects model to reduce the potential bias arising from unmeasured individual characteristics leading to neighbourhood selection. We also control for a range of individual demographic and socio-economic attributes. Based on …