Journal de recherche en économie

Evidence from Brazil on the Enforcement of Labor Regulations and the Effects of Trade on Labor Markets

Giovanni Peri

In this research, we look at how co-ethnic networks influence immigrants' economic performance. We find that immigrants in districts with greater co-ethnic networks are more likely to be employed soon after arrival, using longitudinal data from Germany and a wide set of fixed effects and pre-migration controls to address the possible endogen etic of initial location. After four years, this advantage decreases as migrants in regions with smaller co-ethnic networks catch up due to higher human capital investments. Lower-skilled immigrants, as well as refugees and ethnic Germans, appear to be more affected