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Migrant Networks and Job Search Outcomes: Evidence from Displaced Workers

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  • Tommaso Colussi

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    (Queen Mary, University of London and fRDB)

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    Abstract

    This paper investigates how the job search outcomes of displaced migrants are affected by the labor market outcomes of past co-workers of the same nationality. For this exercise I use matched employer-employee micro data on the universe of private-sector employees in Italy between 1975 and 2001. The analysis shows that a 10 percentage point increase in the network employment rate raises the re-employment probability within 36 months after job loss by 5.7 percentage points. The paper also sheds light on the different mechanisms generating the social effect and it highlights the role of migrant networks in explaining immigrant segregation.

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    File URL: http://www.econ.qmul.ac.uk/papers/doc/wp706.pdf
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    Bibliographic Info

    Paper provided by Queen Mary, University of London, School of Economics and Finance in its series Working Papers with number 706.

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    Date of creation: Jul 2013
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    Handle: RePEc:qmw:qmwecw:wp706

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    Keywords: Migration; Job displacements; Networks;

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    1. Lori A. Beaman, 2012. "Social Networks and the Dynamics of Labour Market Outcomes: Evidence from Refugees Resettled in the U.S," Review of Economic Studies, Oxford University Press, vol. 79(1), pages 128-161.
    2. Albrecht Glitz, 2013. "Coworker Networks in the Labour Market," CESifo Working Paper Series 4250, CESifo Group Munich.
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    4. Michele Pellizzari, 2004. "Do friends and relatives really help in getting a good job?," LSE Research Online Documents on Economics 19980, London School of Economics and Political Science, LSE Library.
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    6. Cutler, David & Vigdor, Jacob & Glaeser, Edward, 1999. "The Rise and Decline of the American Ghetto," Scholarly Articles 2770033, Harvard University Department of Economics.
    7. Deepti Goel & Kevin Lang, 2010. "Social Ties and the Job Search of Recent Immigrants," Working Papers id:2932, eSocialSciences.
    8. Edin, Per-Anders & Fredriksson, Peter & Åslund, Olof, 2000. "Ethnic enclaves and the economic success of immigrants - evidence from a natural experiment," Working Paper Series 2000:9, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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    11. Bruce Sacerdote & David Marmaros, 2005. "How Do Friendships Form?," NBER Working Papers 11530, National Bureau of Economic Research, Inc.
    12. Kaivan Munshi, 2003. "Networks In The Modern Economy: Mexican Migrants In The U.S. Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(2), pages 549-599, May.
    13. David Card & Francesco Devicienti & Agata Maida, 2014. "Rent-sharing, Holdup, and Wages: Evidence from Matched Panel Data," Review of Economic Studies, Oxford University Press, vol. 81(1), pages 84-111.
    14. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December.
    15. Linda Datcher Loury, 2006. "Some Contacts Are More Equal than Others: Informal Networks, Job Tenure, and Wages," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 299-318, April.
    16. Edward P. Lazear, 1999. "Culture and Language," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S95-S126, December.
    17. Bandiera, Oriana & Barankay, Iwan & Rasul, Imran, 2008. "Social capital in the workplace: Evidence on its formation and consequences," Labour Economics, Elsevier, vol. 15(4), pages 724-748, August.
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