Advertisement

Ethnic and Economic Determinants of Migrant Location Choice

  • Cindy Smart
  • Arthur GrimesEmail author
  • Wilbur Townsend
Chapter
Part of the Advances in Spatial Science book series (ADVSPATIAL)

Abstract

This chapter addresses the determinants of migrant location choice within the migrant’s adopted country. We focus on two sets of location determinants: economic determinants and ethnic (country of origin) determinants. Ethnic determinants are found to be important across a wide range of studies. By contrast, prior literature indicates that impacts of economic factors differ according to the characteristics both of locations and of migrants. The first part of the chapter summarises key findings of prior studies into migrant location choice, focusing on economic and ethnic determinants. Much of the literature in this field relates to migrants to the United States of America. The second part of the chapter extends knowledge of migrant location choice by considering another country that hosts a high proportion of international migrants, New Zealand. We draw on unit record New Zealand census data from 2013 for this analysis. The importance of ethnic (country of origin) networks is confirmed in this analysis but so too is the importance of economic factors. The latter finding is in contrast to much of the US based literature. It plausibly reflects the greater emphasis that New Zealand places on skills-based migration relative to the United States. At a technical level, this study uses the average regional wage of the industry in which the migrant is employed, together with region fixed effects, which may contribute to more precise estimates of wage effects than does the more standard use of average regional wages.

Keywords

Migrant location Ethnicity Country of origin Economic determinants 

Notes

Acknowledgements

An earlier version of this chapter was submitted as a dissertation for the degree of BCom(Hons) at University of Auckland by the first author. We thank an anonymous referee for comments on an earlier version of this chapter. Access to the data used in this study was provided by Statistics New Zealand under conditions designed to keep individual information secure in accordance with requirements of the Statistics Act 1975. The opinions presented are those of the authors and do not necessarily represent an official view of Statistics New Zealand, or of the authors’ institutions.

References

  1. Alba RD, Logan JR (1993) Minority proximity to whites in suburbs: an individual-level analysis of segregation. Am J Sociol 98(6):1388–1427CrossRefGoogle Scholar
  2. Allen J, Turner E (1996) Spatial patterns of immigrant assimilation. Prof Geogr 48(2):140–155CrossRefGoogle Scholar
  3. Bartel AP (1989) Where do the new U.S. immigrants live? J Labor Econ 7(4):371–391CrossRefGoogle Scholar
  4. Battisti M, Peri G, Romiti A (2016) Dynamic effects of co-ethnic networks on immigrants’ economic success. NBER working paper 22389, National Bureau of Economic Research, CambridgeGoogle Scholar
  5. Bauer TK, Epstein GS, Gang IN (2002) Herd effects or migration networks? The location choice of Mexican immigrants in the US. Discussion paper. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=327560
  6. Bauer T, Epstein GS, Gang IN (2005) Enclaves, language, and the location choice of migrants. J Popul Econ 18(4):649–662CrossRefGoogle Scholar
  7. Bauer T, Epstein G, Gang IN (2007) The influence of stocks and flows on migrants’ location choices. Res Labor Econ 26(6):199–229CrossRefGoogle Scholar
  8. Bauer T, Epstein GS, Gang IN (2009) Measuring ethnic linkages among migrants. Int J Manpow 30(1/2):56–69CrossRefGoogle Scholar
  9. Borjas GJ (2001) Does immigration grease the wheels of the labor market. Brook Pap Econ Act 1:1–51Google Scholar
  10. Börnisch-Brednich B (2002) Keeping a low profile: an oral history of german immigration to New Zealand. Victoria University Press, WellingtonGoogle Scholar
  11. Carrington WJ, Detragiache E, Vishwanath T (1996) Migration with endogenous moving costs. Am Econ Rev 86(4):909–930Google Scholar
  12. Chang-Richards A, Wilkinson S, Seville E, Brunsdon D (2012) Resourcing the canterbury rebuild: changes and emerging themes. Research paper. http://www.resorgs.org.nz/images/stories/pdfs/Reconstructionfollowingdisaster/case_study_report_resourcing.pdf
  13. Chiswick B, Miller P (2004) Where immigrants settle in the United States. IZA discussion paper No. 1231. BonnCrossRefGoogle Scholar
  14. Church J, King I (1983) Bilingualism and network externalities. Can J Econ 26(2):337–345CrossRefGoogle Scholar
  15. Collins F, Friesen W (2011) Making the most of diversity? The intercultural city project and a rescaled version of diversity in Auckland, New Zealand. Urban Stud 48(14):3067–3085CrossRefGoogle Scholar
  16. Donovan S (2011) Space matters: agglomeration economies and spatial competition in New Zealand. Unpublished Master’s Thesis, VU University Amsterdam, AmsterdamGoogle Scholar
  17. Duranton G, Puga D (2004) Micro-foundations of urban agglomeration economies. In: Henderson VJ, Thisse JF (eds) Handbook of regional and urban economics, vol 4. Elsevier, Amsterdam, pp 2063–2117Google Scholar
  18. Epstein GS (2008) Herd and network effects in migration decision-making. J Ethn Migr Stud 34(4):567–583CrossRefGoogle Scholar
  19. Friesen W (2012) International and internal migration dynamics in a pacific gateway city: Asian migrants into and out of Auckland. N Z Popul Rev 38:1–22Google Scholar
  20. Gang IN, Zimmermann KF (2000) Is child like parent? Educational attainment and ethnic origin. J Hum Resour 35(3):550–569CrossRefGoogle Scholar
  21. Harris JR, Todaro MP (1970) Migration, unemployment and development: a two-sector analysis. Am Econ Rev 60(1):126–142Google Scholar
  22. Jaeger DA (2000) Local labor markets, admission categories, and immigrant location choice. College of William and Mary. http://www.iza.org/conference_files/amm_2004/jaeger_d138.pdf
  23. Jaeger DA (2006) Green cards and the location choices of immigrants in the United States, 1971–2000. Discussion paper. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=905545
  24. Lancee B (2012) Immigrant performance in the labour market: bonding and bridging social capital. Amsterdam University Press, AmsterdamCrossRefGoogle Scholar
  25. Lichter DT, Johnson KM (2006) Emerging rural settlement patterns and the geographic redistribution of America’s new immigrants. Rural Sociol 71(1):109–131CrossRefGoogle Scholar
  26. Maré DC, Morten M, Stillman S (2007) Settlement patterns and the geographic mobility of recent migrants to New Zealand. N Z Econ Pap 41:163–195Google Scholar
  27. Maré DC, Pinkerton RM, Poot J, Coleman A (2012) Residential sorting across Auckland neighbourhoods. N Z Popul Rev 38:23–54Google Scholar
  28. Maré DC, Pinkerton RM, Poot J (2016) Residential assimilation of immigrants: a cohort approach. Migr Stud 4(3):373–401CrossRefGoogle Scholar
  29. McFadden D (1973) Conditional logit analysis of qualitative choice behavior. In: Zarembka P (ed) Frontiers in economics. Academic, New YorkGoogle Scholar
  30. Munshi K (2003) Networks in the modern economy: Mexican migrants in the U.S. labor market. Q J Econ 118(2):549–599CrossRefGoogle Scholar
  31. New Zealand Government (n.d.) Recognised Seasonal Employer (RSE) policy. http://employment.govt.nz/initiatives/strategy/rse/index.asp. Accessed 2 Nov 2015
  32. Statistics New Zealand (2014) 2013 census CURF: user guide. Statistics New Zealand, WellingtonGoogle Scholar
  33. White P (1998) The settlement patterns of developed world migrants in London. Urban Stud 35(10):1725–1744CrossRefGoogle Scholar
  34. Zhou M, Kim SS (2006) Community forces, social capital, and educational achievement: the case of supplementary education in the Chinese and Korean immigrant communities. Harv Educ Rev 76(1):1–29CrossRefGoogle Scholar

Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Boston Consulting GroupSydneyAustralia
  2. 2.Motu Economic and Public Policy ResearchWellingtonNew Zealand
  3. 3.Victoria University of WellingtonWellingtonNew Zealand

Personalised recommendations