Ethnic Economy and Industry in Mid-Twentieth Century Gotham

This paper uses census data to examine the distinction between ethnic economy effects and industry effects in the New York SMSA. Focusing only on employees, I compare the attainments of “insiders,” that is, of ethnics within their ethnic economy industries, with the attainment of “outsiders” in the same industries. I find little difference. I then examine whether the industries in which ethnic economies are embedded offer all incumbents significantly different outcomes than do non-ethnic economy industries. In slightly over half the industries associated with an ethnic economy, earnings were significantly higher than average; no effect on occupational status was uncovered. These results suggest that industrial location is more consequential than being an “insider.”