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Liability-of-Foreignness Effects on Job Success of Immigrant Job Seekers

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Author Info

  • Fang, Tony

    ()
    (Monash University)

  • Samnani, Al-Karim

    ()
    (York University, Canada)

  • Novicevic, Milorad M.

    ()
    (University of Mississippi, Ole Miss)

  • Bing, Mark N.

    ()
    (University of Mississippi, Ole Miss)

Abstract

We examined the liability-of-foreignness (LOF) hypothesis for immigrant and native job seekers by analyzing a national dataset that tracks their use of job-search methods and their associated job outcomes in the Canadian labor market. To our knowledge this is the first empirical test of LOF at the individual-level while controlling for variables at multiple levels. We found support for LOF when job applicants used the rich media job-search methods of social networks and recruitment agencies, but not when they used the lean media of newspaper ads and the internet. Study limitations, implications, and future research are discussed.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6742.

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Length: 46 pages
Date of creation: Jul 2012
Date of revision:
Publication status: published in: Journal of World Business (Columbia); 2013, 48 (1), 98–109
Handle: RePEc:iza:izadps:dp6742

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Keywords: labor market; job success; levels of analysis; immigration policy; liability-of-foreignness;

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References

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  1. Steven Wald & Tony Fang, 2008. "Overeducated Immigrants in the Canadian Labour Market: Evidence from the Workplace and Employee Survey," Canadian Public Policy, University of Toronto Press, vol. 34(4), pages 457-480, December.
  2. Constant, Amelie F. & Kahanec, Martin & Zimmermann, Klaus F., 2008. "Attitudes towards Immigrants, Other Integration Barriers, and Their Veracity," IZA Discussion Papers 3650, Institute for the Study of Labor (IZA).
  3. Weber, Andrea & Mahringer, Helmut, 2002. "Choice and Success of Job Search Methods," Economics Series 125, Institute for Advanced Studies.
  4. Daneshvary, Nasser, et al, 1992. "Job Search and Immigrant Assimilation: An Earnings Frontier Approach," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 482-92, August.
  5. Bloom, D. & Grenier, G. & Gunderson, M., 1993. "The Changing Labour Market Position of Canadian Immigrants," Working Papers 9305e, University of Ottawa, Department of Economics.
  6. Tony Fang & Jelena Zikic & Milorad M. Novicevic, 2009. "Career success of immigrant professionals: stock and flow of their career capital," International Journal of Manpower, Emerald Group Publishing, vol. 30(5), pages 472-488, September.
  7. Paul Frijters & Michael A. Shields & Stephen Wheatley Price, 2005. "Job Search Methods and Their Success: A Comparison of Immigrants and Natives in the UK," Economic Journal, Royal Economic Society, vol. 115(507), pages F359-F376, November.
  8. Susan N. Houseman, 2000. "Why Employers Use Flexible Staffing Arrangements: Evidence from an Establishment Survey," Upjohn Working Papers and Journal Articles 01-67, W.E. Upjohn Institute for Employment Research.
  9. Martin Kahanec & Anzelika Zaiceva, 2009. "Labor market outcomes of immigrants and non-citizens in the EU: An East-West comparison," International Journal of Manpower, Emerald Group Publishing, vol. 30(1/2), pages 97-115, May.
  10. Abdurrahman Aydemir & Mikal Skuterud, 2005. "Explaining the deteriorating entry earnings of Canada's immigrant cohorts, 1966 - 2000," Canadian Journal of Economics, Canadian Economics Association, vol. 38(2), pages 641-672, May.
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  12. Harvey, Michael & Novicevic, Milorad M. & Buckley, M. Ronald & Fung, Helen, 2005. "Reducing inpatriate managers' 'Liability of Foreignness' by addressing stigmatization and stereotype threats," Journal of World Business, Elsevier, vol. 40(3), pages 267-280, August.
  13. Tony Fang & Fiona MacPhail, 2008. "Transitions from Temporary to Permanent Work in Canada: Who Makes the Transition and Why?," Social Indicators Research, Springer, vol. 88(1), pages 51-74, August.
  14. Kuhn, Peter & Skuterud, Mikal Skuterud, 2002. "Internet Job Search and Unemployment Durations," University of California at Santa Barbara, Economics Working Paper Series qt8583s24x, Department of Economics, UC Santa Barbara.
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  22. Paul W. Miller & Barry R. Chiswick, 2002. "Immigrant earnings: Language skills, linguistic concentrations and the business cycle," Journal of Population Economics, Springer, vol. 15(1), pages 31-57.
  23. Jon M Shapiro & Julie L Ozanne & Bige Saatcioglu, 2008. "An interpretive examination of the development of cultural sensitivity in international business," Journal of International Business Studies, Palgrave Macmillan, vol. 39(1), pages 71-87, January.
  24. Susan N. Houseman & Arne L. Kalleberg & George A. Erickcek, 2003. "The role of temporary agency employment in tight labor markets," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 57(1), pages 105-127, October.
  25. Eric G. Moore & Michael A. Pacey, 2003. "Changing Income Inequality and Immigration in Canada, 1980­1995," Canadian Public Policy, University of Toronto Press, vol. 29(1), pages 33-51, March.
  26. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October.
  27. Casey Warman, 2007. "Ethnic enclaves and immigrant earnings growth," Canadian Journal of Economics, Canadian Economics Association, vol. 40(2), pages 401-422, May.
  28. Tony Fang & John S. Heywood, 2010. "Immigration, Ethnic Wage Differentials and Output Pay in Canada," British Journal of Industrial Relations, London School of Economics, vol. 48(1), pages 109-130, 03.
  29. René Böheim & Mark P Taylor, 2002. "Job search methods, intensity and success in Britain in the 1990s," Economics working papers 2002-06, Department of Economics, Johannes Kepler University Linz, Austria.
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Cited by:
  1. Cerdin, Jean-Luc & Brewster, Chris, 2014. "Talent management and expatriation: Bridging two streams of research and practice," Journal of World Business, Elsevier, vol. 49(2), pages 245-252.
  2. Collings, David G., 2014. "Integrating global mobility and global talent management: Exploring the challenges and strategic opportunities," Journal of World Business, Elsevier, vol. 49(2), pages 253-261.

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