Society & Culture / Social Issues / Class & Social Mobility

The Hidden Cost of Ethnic Enclaves: Why Norwegian Immigrants Earned 10% Less

Katherine Eriksson

Did living among your own people actually hurt your career? A groundbreaking study by economist Katherine Eriksson reveals a shocking truth: during the great age of mass migration, Norwegian immigrants who settled in large ethnic enclaves in the U.S. faced a 10% income penalty—and this curse passed down to their children. Using 1910 and 1920 census data and a clever instrumental variable approach, Eriksson shows that enclaves trapped immigrants in low-skill farming jobs, reduced English learning, and limited social mobility. Even the second generation earned less and stayed stuck in rural areas. This isn't just history—it's a warning about the hidden traps of comfort zones. Watch to discover how the 'American melting pot' failed those who clustered together, and what it means for immigrants today.