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Ethnic Enclaves

Title

Ethnic Enclaves

Author

Gold, Steven J.

Research Area

Social Processes

Topic

Immigration

Abstract

Ethnic enclaves are geographically delimited regions wherein a community of immigrants characterized by common national or ethnic origins as well as class diversity owns a significant fraction of local businesses. By pooling business skill and investment capital within an environment of shared solidarity and coethnic employment, group members are able to successfully compete in the host society's economy such that both owners and workers are protected from the economic disadvantages (in the form of low returns on their investments in human capital) that recent immigrants generally encounter when seeking jobs in a host society's labor market. Through reliance on the ethnic enclave, immigrant populations are able to acquire wealth and provide their children with education sufficient to enter the middle class of the host society.