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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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
3146.
Find related papers by JEL classification: J7 - Labor and Demographic Economics - - Labor Discrimination J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
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Amelie Constant & Liliya Gataullina & Klaus F. Zimmermann, 2006.
"Ethnosizing Immigrants,"
IZA Discussion Papers
2040, Institute for the Study of Labor (IZA).
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