Social Contacts and the Economic Performance of Immigrants: A Panel Study of Immigrants in Germany
AbstractUsing 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 InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5775.
Length: 44 pages
Date of creation: Jun 2011
Date of revision:
Publication status: published in: International Migration Review, 2012, 46 (3), 680-709
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Find related papers by JEL classification:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-25 (All new papers)
- NEP-EUR-2011-06-25 (Microeconomic European Issues)
- NEP-HME-2011-06-25 (Heterodox Microeconomics)
- NEP-LAB-2011-06-25 (Labour Economics)
- NEP-MIG-2011-06-25 (Economics of Human Migration)
- NEP-SOC-2011-06-25 (Social Norms & Social Capital)
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.:
- 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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