In this research, we investigate where (in which neighborhood) newly arrived immigrants find their first job as a function of co-ethnic commuters. Using detailed employer- employee matched data, we are able to isolate ethnic peers from overall commuter flows. We argue that ethnic peers can provide better information about jobs in their workplace location than in other parts of the city. Exploiting this (information) heterogeneity in a conditional logit model allows us to control for individual-level and neighborhood- level heterogeneity. Our analysis provides causal evidence of positive effects of ethnic networks on labor market integration by reducing information frictions.
Contact person: Anastasiia Lutsenko