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The spatial extent of network externalities in international migration

Author

Listed:
  • Roberto Basile

    (Department of Industrial and Information Engineering and Economics. University of L'Aquila)

  • Francesca Licari

    (Italian National Institute of Statistics (ISTAT))

Abstract
In this paper, we assess the effect of community networks on the location choice of foreign immigrants in Italy. Our results confirm the existence of strong network externalities, but they also suggest that these effects spill over the borders of local labor markets areas (LLMAs). Significant positive spatial spillovers are indeed evident up to the second-order of contiguity, while a negative (spatial competition) effect emerges at the third-order. A possible channel for the generation of these spatial spillovers is the existence of common markets for unskilled and ethnic-specific jobs.

Suggested Citation

  • Roberto Basile & Francesca Licari, 2020. "The spatial extent of network externalities in international migration," Discussion Paper series in Regional Science & Economic Geography 2020-02, Gran Sasso Science Institute, Social Sciences, revised May 2020.
    • Handle: RePEc:ahy:wpaper:wp2
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Community networks; Immigration; Gravity models; Spatial dependence;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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