The (Un)importance of Neighbourhood Composition for Immigrant Job Attainment Through Co-Ethnic Social Networks

Despite a growing body of research on the role of co-ethnic social networks in the economic integration of immigrants, findings remain inconclusive. Many studies overlook the possibility of heterogeneous effects, specifically that certain neighbourhood compositions may be necessary conditions for immigrants to benefit from co-ethnic social capital. Addressing this gap, we investigate whether the impact of co-ethnic social networks on job attainment varies across neighbourhood contexts. Drawing on register data covering all immigrants from MENAPT countries who arrived in Denmark between 2008 and 2016, we measure co-ethnic networks as the presence of co-nationals and family in immigrants’ initial neighbourhoods. Neighbourhood typologies are derived using k-means clustering on individual-level data from the entire Danish population. To estimate the interaction effects of co-ethnic networks and neighbourhood types, we fit a hierarchical Bayesian zero-one inflated beta regression model.Contrary to expectations, we find no association between the presence of co-ethnic networks and job attainment, regardless of neighbourhood type, network composition (co-national or family), or gender. This also holds true in immigrant-dense neighbourhoods, which are more likely to function as ethnic enclaves. Our findings lend support to prior research emphasizing the importance of structural neighbourhood factors—such as local unemployment rates, average income levels, and the size of the immigrant population—over specific neighbourhood compositions. We conclude by urging researchers to further examine whether heterogeneous effects emerge for other labour market outcomes, such as occupational status, and suggest that settlement policies designed to improve employment outcomes through neighbourhood placement may need to be reconsidered.