Neighborhood Effects on Intergenerational Cultural Transmission

I estimate bounds on the effect of growing up in an ethnic enclave on various outcomes associated with second-generation immigrants' cultural assimilation. I use the two-sample estimator of Hwang(2021) to bound the omitted variable bias from unobservable parental cultural preference, which partially determines childhood neighborhoods as well as their child’s cultural preference. Using linked micro census data and a cross-sectional survey on South Asian immigrants in England and Wales, I find that childhood neighborhood changes some South Asian second-generation immigrants' adulthood outcomes (female employment, female college graduation, enclave residency). This implies that neighborhood integration policy can impact immigrants' cultural assimilation