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Immigrant Incorporation in the Garment Industry of Los Angeles 1

Stressing the network's facilitation of immigrants’ searches for jobs and housing, migration network theory has conceptually overlooked the manner in which immigrants’ social networks also expand the supply of jobs and housing in target destinations by means of the ethnic economy. An expanded migration network theory takes into account the ethnic economy's role in creating new resources in the destination economy. However, the power of this objection wanes in the context of working-class immigrations that generate few entrepreneurs. Introduced here, the concept of immigrant economy responds to this contingency. Unlike ethnic economies, in which co-ethnics hire co-ethnics, immigrant economies arise when immigrants hire non-co-ethnic fellow immigrants. This situation usually arises when very entrepreneurial immigrant groups coexist in a labor market with working-class immigrant groups that generate few entrepreneurs of their own. Using evidence from the garment industry of Los Angeles, this paper estimates that only a third of immigrant employees found their jobs in a conventional ethnic economy. Half owed their employment to the immigrant economy in which, for the most part, Asian entrepreneurs employed Latino workers.