The Economics of Ethnic Enclaves

DiscussionEnclaves are often formed naturally, and they lower the costs of gathering information for newly arrived immigrants. These immigrants benefit economically and culturally, and these benefits are often perceived as outweighing the potential costs of enclave life. Since ethnic enclaves will not disappear, making them better is the easiest approach to encourage faster and better assimilation.Granting illegal immigrants legal status wouldencourage many to contribute in new ways to the formal market economy and improve their skills and income over the long run.Also, research has shown that legalizing illegal immigrants incentivizes many to move from higher immigrant populations to lower immigrant populations– a potentially important development that can lead to more assimilation.The literature on ethnic enclaves produces many consistent findings. Many of these findings could aid in the creation of immigration policies that better affect immigrant assimilation. Most importantly, immigrants residing in enclaves are more likely to be employed and employed with higher wages when the average education and entrepreneurial levels of said ethnic enclaves are higher. Adopting policies to increase entrepreneurship by relaxing regulatory burdens, likeoccupational licensing andminimum wage, will give many immigrants the opportunity to more easily establish new businesses. Ethnic enclaves assist in assimilating immigrants into the American economy, and policies focused on maximizing...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs