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Social Networks and the Labour Market Mismatch

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  • Kalfa, Eleni

    (University of Kent)

  • Piracha, Matloob

    (University of Kent)

Abstract

This paper assesses the extent to which social contacts and ethnic concentration affect the education-occupation mismatch of natives and immigrants. Using Australian panel data and employing a dynamic random effects probit model, we show that social capital exacerbates the incidence of over-education, particularly for females. Furthermore, for the foreign-born, ethnic concentration significantly increases the incidence of over-education. Using an alternative index, we also show that social participation, friends and support and ethnic concentration are the main contributors in generating a mismatch, while reciprocity and trust does not seem to have any effect on over-education for both, immigrants and natives. Finally, we show that social networks are more beneficial for the relatively better educated.

Suggested Citation

  • Kalfa, Eleni & Piracha, Matloob, 2015. "Social Networks and the Labour Market Mismatch," IZA Discussion Papers 9493, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9493
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    References listed on IDEAS

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    Cited by:

    1. Dafeng Xu & Yuxin Zhang, 2022. "Identifying ethnic occupational segregation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(3), pages 1261-1296, July.
    2. María Paola Sevilla & Mauricio Farías & Daniela Luengo-Aravena, 2021. "Patterns and Persistence of Educational Mismatch: A Trajectory Approach Using Chilean Panel Data," Social Sciences, MDPI, vol. 10(9), pages 1-24, September.
    3. Piracha, Matloob & Tani, Massimiliano & Cheng, Zhiming & Wang, Ben Zhe, 2021. "Ethnic Identity and Immigrants' Labour Market Outcomes," IZA Discussion Papers 14123, Institute of Labor Economics (IZA).
    4. Matloob Piracha & Massimiliano Tani & Zhiming Cheng & Ben Zhe Wang, 2023. "Social assimilation and immigrants’ labour market outcomes," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(1), pages 37-67, January.
    5. Pierre Georges Van Wolleghem & Marina De Angelis & Sergio Scicchitano, 2023. "Do informal Networks Increase Migrants’ Over-Education? Comparing Over-Education for Natives, Migrants and Second Generations in Italy and Assessing the Role of Networks in Generating It," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(1), pages 175-197, March.
    6. Obbey Ahmed Elamin, 2018. "Impact of Informal Job-search on Wages for University Graduates in Egypt and Jordan," Working Papers 1272, Economic Research Forum, revised 19 Dec 2018.
    7. Nancy Kracke & Christina Klug, 2021. "Social Capital and Its Effect on Labour Market (Mis)match: Migrants’ Overqualification in Germany," Journal of International Migration and Integration, Springer, vol. 22(4), pages 1573-1598, December.
    8. Massimiliano Tani & Zhiming Cheng & Matloob Piracha & Ben Zhe Wang, 2022. "Ageing, Health, Loneliness and Wellbeing," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(2), pages 791-807, April.
    9. Juan Acosta-Ballesteros & María del Pilar Osorno-del Rosal & Olga María Rodríguez-Rodríguez, 2018. "Overeducation of Young Workers in Spain: How Much Does the First Job Matter? Social Indicators Research," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(1), pages 109-139, July.
    10. Randazzo, Teresa & Piracha, Matloob, 2024. "Ethnic identity and educational outcomes," GLO Discussion Paper Series 1387, Global Labor Organization (GLO).
    11. Deole, Sumit S. & Huang, Yue, 2020. "Suffering and prejudice: Do negative emotions predict immigration concerns?," GLO Discussion Paper Series 644, Global Labor Organization (GLO).
    12. Van Wolleghem, Pierre Georges & De Angelis, Marina & Scicchitano, Sergio, 2019. "Education-occupation mismatch of migrants in the Italian labour market: the effect of social networks," GLO Discussion Paper Series 398, Global Labor Organization (GLO).
    13. Chiara Mussida & Luca Zanin, 2020. "I found a better job opportunity! Voluntary job mobility of employees and temporary contracts before and after the great recession in France, Italy and Spain," Empirical Economics, Springer, vol. 59(1), pages 47-98, July.
    14. Eric Schuss, 2020. "Do Ethnic Networks Ameliorate Education–Occupation Mismatch?," LABOUR, CEIS, vol. 34(4), pages 441-476, December.
    15. Sumit S. Deole & Yue Huang, 2023. "Suffering and prejudice: Do negative emotions predict immigration concerns?," IAAEU Discussion Papers 202303, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).

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    More about this item

    Keywords

    over-education; ethnic concentration; social capital;
    All these keywords.

    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; Language; Social and Economic Stratification

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