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Do Migrants get Good Jobs in Australia? The Role of Ethnic Networks in Job Search

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  • ST�PHANE MAHUTEAU
  • P.N. (RAJA) JUNANKAR

Abstract

We study the role of ethnic networks in migrants' job search and the quality of jobs they find in the first years of settlement. We find that there are initial downward movements along the occupational ladder, followed by improvements. As a result of restrictions in welfare eligibility since 1997, we study whether this increases the probability that new migrants accept 'bad jobs' quickly and then move onto better jobs over time. Holding employability constant, our results support this view. However, accounting for their higher employability, new migrants seem to fare better up to 1.5�years after settlement. Copyright © 2008 The Economic Society of Australia.

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Bibliographic Info

Article provided by The Economic Society of Australia in its journal Economic Record.

Volume (Year): 84 (2008)
Issue (Month): s1 (09)
Pages: S115-S130

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Handle: RePEc:bla:ecorec:v:84:y:2008:i:s1:p:s115-s130

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References

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  1. Chiswick, Barry R. & Lee, Yew Liang & Miller, Paul W., 2002. "The Determinants of the Geographic Concentration among Immigrants: Application to Australia," IZA Discussion Papers 462, Institute for the Study of Labor (IZA).
  2. Stark, Oded & Wang, You Qiang, 2002. "Migration Dynamics," Economics Series 112, Institute for Advanced Studies.
  3. P.N. (Raja) Junankar & Stephane Mahuteau, 2005. "Do Migrants Get Good Jobs? New Migrant Settlement in Australia," The Economic Record, The Economic Society of Australia, vol. 81(s1), pages S34-S46, 08.
  4. Simon, Curtis J & Warner, John T, 1992. "Matchmaker, Matchmaker: The Effect of Old Boy Networks on Job Match Quality, Earnings, and Tenure," Journal of Labor Economics, University of Chicago Press, vol. 10(3), pages 306-30, July.
  5. Yamauchi, Futoshi & Tanabe, Sakiko, 2003. "Nonmarket networks among migrants," FCND discussion papers 169, International Food Policy Research Institute (IFPRI).
  6. Deborah A. Cobb-Clark, 2003. "Public policy and the labor market adjustment of new immigrants to Australia," Journal of Population Economics, Springer, vol. 16(4), pages 655-681, November.
  7. Barry R. Chiswick & Yew Liang Lee & Paul W. Miller, 2002. "Longitudinal Analysis of Immigrant Occupational Mobility: A Test of the Immigrant Assimilation Hypothesis," Economics Discussion / Working Papers 02-08, The University of Western Australia, Department of Economics.
  8. Cobb-Clark, Deborah A, 2000. "Do Selection Criteria Make a Difference? Visa Category and the Labour Market Status of Immigrants to Australia," The Economic Record, The Economic Society of Australia, vol. 76(232), pages 15-31, March.
  9. Kaivan Munshi, 2003. "Networks In The Modern Economy: Mexican Migrants In The U.S. Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(2), pages 549-599, May.
  10. Harriet Orcutt Duleep & Mark C. Regets, 1996. "Earnings Convergence: Does It Matter Where Immigrants Come From or Why?," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 130-34, April.
  11. Zimmermann, Klaus F. & Bauer, Thomas K., 1999. "Occupational Mobility of Ethnic Migrants," IZA Discussion Papers 58, Institute for the Study of Labor (IZA).
  12. Linda Datcher Loury, 2004. "Some Job Contacts are More Equal Than Others: Earnings and Job Information Networks," Discussion Papers Series, Department of Economics, Tufts University 0404, Department of Economics, Tufts University.
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Citations

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Cited by:
  1. Luciana Méndez Errico, 2013. "The Impacts of Social Networks on Immigrants’ Employment Prospects: The Spanish Case 1997-2007," Working Papers wpdea1301, Department of Applied Economics at Universitat Autonoma of Barcelona.
  2. Baert, Stijn & Cockx, Bart, 2013. "Pure Ethnic Gaps in Educational Attainment and School to Work Transitions: When Do They Arise?," IZA Discussion Papers 7262, Institute for the Study of Labor (IZA).
  3. Matloob Piracha & Stephane Mahuteau & Massimiliano Tani, 2010. "Selection Policy and Immigrants’ Remittance Behaviour," Studies in Economics 1003, Department of Economics, University of Kent.
  4. Weiping Kostenko & Mark Harris & Xueyan Zhao, 2009. "Occupational Transition and Country-of-Origin Effects in the Early Stage Occupational Assimilation of Immigrants: Some Evidence from Australia," Melbourne Institute Working Paper Series wp2009n20, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  5. Ham, Roger & Junankar, Pramod N. (Raja) & Wells, Robert, 2009. "Occupational Choice: Personality Matters," IZA Discussion Papers 4105, Institute for the Study of Labor (IZA).
  6. Kim, Young Chul, 2009. "Lifetime Network Externality and the Dynamics of Group Inequality," MPRA Paper 18767, University Library of Munich, Germany.
  7. Vincent Law, 2011. "Welfare Policy and Labour Supply of Immigrants in Australia," Crawford School Research Papers 1109, Crawford School of Public Policy, The Australian National University.
  8. Booth, Alison L. & Leigh, Andrew & Varganova, Elena, 2010. "Does Racial and Ethnic Discrimination Vary Across Minority Groups? Evidence from a Field Experiment," IZA Discussion Papers 4947, Institute for the Study of Labor (IZA).
  9. Castro Campos, Bente, 2013. "Human capital differences or labor market discrimination? The occupational outcomes of ethnic minorities in rural Guizhou (China)," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 73, number 73.
  10. A Aggarwal & R Freguglia & G Johnes & G Spricigo, 2011. "Education and labour market outcomes : evidence from India," Working Papers 615663, Lancaster University Management School, Economics Department.
  11. Mahuteau, Stéphane & Piracha, Matloob & Tani, Massimiliano & Vaira-Lucero, Matias, 2011. "Immigration Policy and Entrepreneurship," IZA Discussion Papers 6238, Institute for the Study of Labor (IZA).

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