IZA DP No. 11608: Growing Up in Ethnic Enclaves: Language Proficiency and Educational Attainment of Immigrant Children
published in: Journal of Population Economics, 2022, 35, 1297â€“1344
Does a high regional concentration of immigrants of the same ethnicity affect immigrant childrenÃ¢â‚¬â„¢s acquisition of host-country language skills and educational attainment? We exploit the exogenous placement of guest workers from five ethnicities across German regions during the 1960s and 1970s in a model with region and ethnicity fixed effects. Our results indicate that exposure to a higher own-ethnic concentration impairs immigrant childrenÃ¢â‚¬â„¢s host-country language proficiency and increases school dropout. A key mediating factor for this effect is parentsÃ¢â‚¬â„¢ lower speaking proficiency in the host-country language, whereas inter-ethnic contacts with natives and economic conditions do not play a role.