Research and policy contextThe issue of immigration and the resulting ethnic concentrations in some metropolitan neighbourhoods has achieved a salient position in public discourse and policy discussions in Western Europe and the United States alike. In the United States this issue has taken on increased political significance as states and the federal government have considered and sometimes enacted legislative initiatives that would restrict immigration or limit types of social benefits to immigrants already living in the country (Preston et al, 1998). The popular justification for these initiatives is that many immigrants`don't pull their own weight' and thus create`fiscal burdens' (James et al, 1998). In Western Europe this issue is implicit in the widespread adoption of`social mix' strategies wherein new housing development programmes and allocation schemes for social housing tenants have been tailored to minimize ethnic clustering (Andersson, 1998;2001;Musterd, 2003;Musterd and Andersson, 2005). In some countriesönot least in Sweden, which provides the empirical ground for this paper, but also in the Netherlands, Norway, and Denmarkö refugee-dispersal policies are triggered by implicit and sometimes explicit views that the spatial concentration of immigrants is detrimental for their integration processes (Andersson, 2004).