Origins
Wilson and Portes (1980) found Cubans working for co-ethnic firms earned better returns on human capital than those in the secondary sector, suggesting enclaves can be mobility routes unlike the dual labor market.
Mechanisms
Portes and Bach (1985) described reciprocal obligations: workers accept lower pay for training and business opportunities, drawing on co-ethnic social capital and migration networks.
Debate
Sanders and Nee (1987) argued enclaves benefit owners more than workers; Portes and Jensen (1989) responded. Zhou and Logan (1989) found gender differences in Chinatown. Light and colleagues (1994) proposed the 'ethnic economy', and Zhou (2004) linked it to segmented assimilation.
FAQ
- What is an ethnic enclave economy in simple terms?
- An economy like Chinatown where immigrants of one group employ and trade with each other.
- Is it always good for immigrants?
- It can offer mobility, but critics say it may mean low pay and exploitation.
Sources reviewed: 2026-10-26
References
- Wilson, K. L., & Portes, A. (1980). Immigrant enclaves: An analysis of the labor market experiences of Cubans in Miami. American Journal of Sociology, 86(2), 295–319. The founding enclave study.
- Portes, A., & Bach, R. L. (1985). Latin journey: Cuban and Mexican immigrants in the United States. University of California Press. Longitudinal study of Cuban and Mexican immigrants.
- Sanders, J. M., & Nee, V. (1987). Limits of ethnic solidarity in the enclave economy. American Sociological Review, 52(6), 745–773. The key critique.
- Portes, A., & Jensen, L. (1989). The enclave and the entrants: Patterns of ethnic enterprise in Miami before and after Mariel. American Sociological Review, 54(6), 929–949. The response to critics.
- Zhou, M., & Logan, J. R. (1989). Returns on human capital in ethnic enclaves: New York City's Chinatown. American Sociological Review, 54(5), 809–820. Evidence from Chinatown.
- Light, I., Sabagh, G., Bozorgmehr, M., & Der-Martirosian, C. (1994). Beyond the ethnic enclave economy. Social Problems, 41(1), 65–80. Proposes the broader ethnic economy.
- Zhou, M. (2004). Revisiting ethnic entrepreneurship: Convergencies, controversies, and conceptual advancements. International Migration Review, 38(3), 1040–1074. A review of ethnic entrepreneurship.