This study addresses a recent controversy over the character of labor markets in enclave economies: does the enclave provide positive earnings-returns to educational and other human capital characteristics to immigrant minority-group workers? We study the case of the Chinese enclave in New York City, using three distinct operational definitions of the enclave-as a place of residence, place of work, and industrial sector. Regardless of the definition employed, there is considerable evidence of positive returns for earnings for male enclave workers from education, labor market experience, and English-language ability. By contrast, none of these human capital variables is positively related to income of female enclave workers. Implications of these results for comparative research are suggested.

The predominant post-1965 immigrant groups have established distinctive settlement areas in many American cities and suburbs. These areas are generally understood in terms of an immigrant enclave model in which ethnic neighborhoods in central cities serve relatively impoverished new arrivals as a potential base for eventual spatial assimilation with the white majority. This model, and the ethnic community model, are evaluated here. In the ethnic community model, segregated settlement can result from group preferences even when spatial assimilation is otherwise feasible. Analysis of the residential patterns of the largest immigrant groups in New York and Los Angeles shows that most ethnic neighborhoods can be interpreted as immigrant enclaves. In some cases, however living in ethnic neighborhoods is unrelated to economic constraints, indicating a positive preference for such areas. Suburban residence does not necessarily imply living outside of ethnic neighborhoods. Indeed, for several groups the suburban enclave provides an alternative to assimilation-it is an ethnic community in a relatively high-status setting.