Estimating the effect of "ethnic capital" on human capital investment decisions is complicated by the endogeneity of location choice of immigrants and the reflection problem. We exploit a rare immigrant settlement policy in Germany to identify the causal impact of parental peer-heterogeneity on...

Estimating the effect of ethnic capital on human capital investment decisions is complicated by the endogeneity of immigrants' location choice, unobserved local correlates and the reflection problem. We exploit the institutional setting of a rare immigrant settlement policy in Germany, that...