Education, reputation or network? Evidence on migrant workers employability
AbstractThe strong adverse selection that immigrants face in hosting labour markets may induce them to adopt some behaviours or signals to modify employers' beliefs. Relevant mechanisms for reaching this purpose are personal reputation; exploiting ethnic networks deeply rooted in the hosting country; and high educational levels used as an indirect signal of productivity. On this last point, the immigrant status needs a stronger signal compared to that necessary for a native worker, and this may lead the immigrant to accept job qualifications which are lower than those achievable through the embodied educational level. The aim of the paper is to investigate whether the above mentioned mechanisms are adopted by immigrants in Italy, a crucial country for EU immigration flows, and if they are useful in increasing immigrants' likelihood of employment. The empirical analysis has been conducted using the dataset from a national Labour Force Survey which provides information on thousands of documented immigrants. We estimate a logit model for immigrants' likelihood of being employed, focusing on the above mentioned mechanisms: reputation, ethnic networks and educational level. Moreover we concentrate on the interaction effects of the mechanisms and investigate whether one of them wins on the others. Results show that each of the three mechanisms is statistically and economically significant and exerts positive influence: all factors contribute to increase the immigrant's probability of being employed. Anyway, a high level of education increases the probability of being employed more than the belonging to ethnic networks deeply rooted in Italy. The specific embodied capital of workers matter relatively more. This is relevant for labour public policies in this specific realm since the human capital lever is a possible direct target in various public policies and private human capital investments.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal The Journal of Socio-Economics.
Volume (Year): 39 (2010)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/620175
Educational qualifications Migrant networks Immigrant employability Reputation Segmented labour markets;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John G. Riley, 1976.
UCLA Economics Working Papers
071, UCLA Department of Economics.
- Kifle, Temesgen, 2009. "The effect of immigration on the earnings of native-born workers: Evidence from Australia," The Journal of Socio-Economics, Elsevier, vol. 38(2), pages 350-356, March.
- Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
- Battu, Harminder & Sloane, Peter J., 2002.
"Overeducation and Ethnic Minorities in Britain,"
IZA Discussion Papers
650, Institute for the Study of Labor (IZA).
- James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
- Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August.
- Parvinder Kler, 2007. "A panel data investigation into over-education among tertiary educated Australian immigrants," Journal of Economic Studies, Emerald Group Publishing, vol. 34(3), pages 179-193, September.
- Kenneth J. Arrow, 1998. "What Has Economics to Say about Racial Discrimination?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 91-100, Spring.
- Green, Colin & Kler, Parvinder & Leeves, Gareth, 2007. "Immigrant overeducation: Evidence from recent arrivals to Australia," Economics of Education Review, Elsevier, vol. 26(4), pages 420-432, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If references are entirely missing, you can add them using this form.