The Effect of Economic Standing,Individual Preferences,and Co-ethnic Resources on Immigrant Residential Clustering 1

Our study examines how immigrants cluster in co-ethnic neighborhoods. We systematically explore the effects of three factors on the co-ethnic clustering of immigrants: economic resources, co-ethnic preferences, and the use of co-ethnic information sources. The study is based on a unique data set that provides rarely available rich information on housing search collected in Toronto in 2006. Focusing on Asian Indians and Chinese immigrants, the results clearly suggest that of all preferences, only co-ethnic preference is related to co-ethnic clustering of the two groups when income and use of co-ethnic resources are taken into consideration, and that levels of co-ethnic clustering are not related to the economic resources of immigrants. The findings also reveal that some effects are distinctive to specific groups. Although immigrants use various co-ethnic resources to obtain housing information, only the use of co-ethnic real estate agents is significant, and that only for the clustering of Chinese, not for Asian Indians.