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Social Determinants of Labor Market Status of Ethnic Minorities in Britain

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  • Kahanec, Martin

    ()
    (Central European University)

  • Mendola, Mariapia

    ()
    (University of Milan Bicocca)

Abstract

The labor market outcomes of ethnic minorities in advanced societies and their dependence on social relationships and membership in social networks are important empirical issues with significant policy consequences. We use detailed micro-data on multiple-origin ethnic minorities in England and Wales and a discrete choice model to investigate these issues. We find that the core family structure and contacts with parents and children away (in Britain) increases the probability of self-employment. On the other hand, engagement in organizational social networks is more likely to channel the same people into paid employment. Finally, disaggregating different types of social networks along their compositional characteristics, we find that having ethnic friends is positively associated with the likelihood to be self-employed while integration in mixed or non-ethnic social networks facilitates paid employment among minority individuals. These findings hint at a positive role of social integration on employment opportunities of ethnic communities in host societies.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3146.

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Length: 35 pages
Date of creation: Nov 2007
Date of revision:
Publication status: published in: Research in Labor Economics, 2009, 29, 167-195
Handle: RePEc:iza:izadps:dp3146

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Keywords: social ties; ethnic minorities; self-employment; labor market;

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Citations

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Cited by:
  1. Kahanec, Martin & Zaiceva, Anzelika, 2008. "Labor Market Outcomes of Immigrants and Non-Citizens in the EU: An East-West Comparison," IZA Discussion Papers 3420, Institute for the Study of Labor (IZA).
  2. Martin Kahanec & Anzelika Zaiceva & Klaus F. Zimmermann, 2010. "Ethnic Minorities in the European Union: An Overview," Discussion Papers of DIW Berlin 1090, DIW Berlin, German Institute for Economic Research.
  3. Margherita Comola & Mariapia Mendola, 2013. "The Formation of Migrant Networks," Development Working Papers 353, Centro Studi Luca d\'Agliano, University of Milano.
  4. 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.

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