Do Enclaves Matter in Immigrant Adjustment? Discussion Paper.

This paper examines the determinants and consequences of immigrant/linguistic concentrations (enclaves), discussing reasons for the formation of those concentrations. It develops hypotheses regarding "ethnic goods" (market and non-market goods and services consumed by members of an immigrant/ethnic group that are not consumed by others), the effect of concentrations on immigrants' language skills, and the effect on immigrant earnings of destination language skills and linguistic concentration. These hypotheses are tested using the 1990 U.S. Census Public Use Microdata Sample data on adult male immigrants from non-English speaking countries. Results indicate that linguistic concentrations reduce immigrants' English language skills. Immigrants' annual earnings increase with proficiency in the destination language and with skill level (schooling, experience, and duration in the United States) and number of weeks worked. Annual earnings are higher among married men, men living in urban areas outside the south, men who are citizens, and men who are not black. Overall, the results suggest that enclaves impact immigrant adjustment. (Contains 17 references.) (Adjunct ERIC Clearinghouse for ESL Literacy Education) (SM)