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Social Contacts and the Economic Performance of Immigrants: A Panel Study of Immigrants in Germany

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Author Info

  • Kanas, Agnieszka

    ()
    (Utrecht University)

  • Chiswick, Barry R.

    ()
    (George Washington University)

  • van der Lippe, Tanja

    ()
    (Utrecht University)

  • van Tubergen, Frank

    ()
    (Utrecht University)

Abstract

Using data from the German Socio-Economic Panel, we examined the impact of social contacts on immigrant occupational status and income. In addition to general social contacts, we also analyzed the effects of bonding (i.e., co-ethnic) and bridging (i.e., interethnic) ties on economic outcomes. Results show that general social contacts have a positive effect on the occupational status and, in particular, annual income of immigrants. We also find that bridging ties with Germans lead to higher occupational status, but not to increased income. These effects remain visible even when social contacts are measured (at least) one year prior to the economic outcomes, as well as when earlier investments in German human capital are considered. Finally, we show that co-ethnic concentration in the region of residence weakly affects economic returns to German language proficiency and schooling.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5775.

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Length: 44 pages
Date of creation: Jun 2011
Date of revision:
Publication status: published in: International Migration Review, 2012, 46 (3), 680-709
Handle: RePEc:iza:izadps:dp5775

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Related research

Keywords: immigrants; social contacts; occupational status; income; panel data;

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  1. Catalina Amuedo-Dorantes & Kusum Mundra, 2007. "Social networks and their impact on the earnings of Mexican Migrants," Demography, Springer, vol. 44(4), pages 849-863, November.
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Cited by:
  1. Lieselotte Blommaert & Marcel Coenders & Frank Tubergen, 2014. "Ethnic Discrimination in Recruitment and Decision Makers’ Features: Evidence from Laboratory Experiment and Survey Data using a Student Sample," Social Indicators Research, Springer, vol. 116(3), pages 731-754, May.

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