Port-of-Entry Neighbourhood and Its Effects on the Economic Success of Refugees in Sweden

We investigate the degree to which the ethnic group composition of “port-of-entry neighborhood” (PoE), the first permanent settlement after immigration, affects the employment prospects of refugees in Sweden during the subsequent 10 years. We use panel data on working-age adults from Iran, Iraq, and Somalia immigrating into Sweden from 1995 to 2004. We control for initial individual and labor market characteristics, use instrumental variable regression to avoid bias from geographic selection, and stratify models by gender and co-ethnic employment and education rates within the neighborhood. We find that the impact of co-ethnic neighbors in the PoE varies dramatically by gender.