Women's Labor and Enclave Employment: The Case of Dominican and Colombian Women in New York City

Abstract

The enclave hypothesis holds that obligations stemming from a common ethnicity not only permit utilization of past investments in human capital, but help to create opportunities for mobility. This implies that both men and women benefit from a broader reward structure involving more than just wages. Yet few studies examine whether immigrants in co-ethnic-owned firms, particularly women, benefit from these other forms of compensation, such as advancement opportunities. Using data from a survey of Colombian and Dominican immigrants in New York City, this research examines whether Dominican and Colombian women working in Hispanic-owned firms in New York City are advantaged relative to women in other labor market sectors in earnings-returns to human capital, opportunities for skill acquisition, and fringe benefits. The results indicate that enclave employment provides women with low wages, minimal benefits, and few opportunities for advancement.