User:ToharZamir/Ethnic enclave

Economic[edit]
Ethnic enclave economies are predicated upon aspects of economic sociology and the sociology of immigration. Ethnic Enclaves generate a pool of social capital through which members can access resources that lower the costs of migration. Enclave membership provides economic assistance such as job opportunities and small businesses loans. Small ethnic firms within the enclave provide new immigrants with immediate access to economic opportunities by subverting the secondary sector of the economy and creating numerous low-wage jobs that are easily accessed by members. The ethno-centric nature of businesses and firms provides easy integration into enclave economies. Goods and services tend to be offered in the ethnic group's language, while social and cultural norms specific to the host country are not required of employees in the enclave economy. Thus, the ethno-specific nature of enclave economies makes them attractive to new immigrants who are otherwise unable integrate into the mainstream economy.

An individual's entrance into the enclave economy is dependent upon the conditions of incorporation they experience. Unfavorable modes of incorporation into the host society provide incentives for immigrants to enter the informal economy. Discrimination, hostility, and a lack of resources may encourage immigrants to enter into informal employment. Ethnic enclaves are rich in informal activities, as the entrepreneurial services making the core of the enclave's founding were historically informal ventures. Informality proves favorable for many immigrant entrepreneurs by bypass regulatory expenses. Additionally, the scope of employment for immigrants is greatly widened by the availability of informal jobs in the enclave economic sector. The informality of the enclave economy simultaneously induces risk and fraud. Informal activities are constantly under risk of detection by the formal sector, which has a negative effect on job security. Furthermore, due to the absence of legal framework, immigrant laborers often remain silent about various forms of exploitation. The most common form of labor exploitation in immigrant economies is unpaid labor. Undocumented immigrants are especially afraid to report violations of labor laws and exploitation.

NEW SECTION TO BE ADDED ONTO ECON. SECTION, ¶1:
Ethnic enclave economies also provide a method for immigrants who enter at lower wage jobs to rise to the status community entrepreneurs own firms within the community. While benefiting from the higher wages that owning a business provides them, these established immigrants continue the cycle of providing attractive (albeit lower income) labor to newcomers within the framework of the ethnic enclave. The ethnic enclave economy allows for a measure of independence for immigrants by creating a path for them to own businesses. Ethnic enclave economies also have the effect of raising the hourly wages of workers within the enclave.