Description:
This article analyses the relationship between the size and the quality of ethnic enclaves on immigrants' labour market integration. Using exogenously defined grid cells to delineate neighbourhoods we find robust empirical evidence that the employment rate of the respective immigrant group in the vicinity (as a measure of enclave quality) facilitates labour market integration of new immigrants. The influence of the overall employment rate and the share of co-nationals in the neighbourhood tend to be positive, but less robust. We thus conclude that the quality is more important than the size of the ethnic enclave in helping new immigrants finding jobs.