The role of ethnic concentration on the economic outcomes of immigrants and natives

Abstract

The economic integration of immigrants in the host society can be explained by many different factors. In this study, I focus on the effect of ethnic concentration on the economic outcomes of both immigrants and natives. For this, three theories on ethnic concentration – economic threat hypothesis, ethnic enclave argument and occupational queuing model – are tested in the Netherlands. Hypotheses are formulated regarding the effect of ethnic concentration on the occupational status of immigrants and natives. These hypotheses are tested using the dataset from the Social Position and Use of Welfare Facilities by Immigrants of 1998. Ethnic concentration was found to have no effect on the occupational status of immigrants or natives. However, human capital characteristics are proven to have a positive significant effect on the occupational status.