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Social Networks in Determining Migration and Labor Market Outcomes: Evidence from the German Reunification

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  • Helmut Rainer
  • Thomas Siedler

Abstract

This paper empirically examines social network explanations for migration decisions in the context of the German reunification. Using longitudinal data from the German Socio-Economic Panel, we first show that the presence of family and friends in West Germany is an important predictor for the migration hazard rate of East Germans. We then explore whether pre-migration networks have a discernible impact on the economic and social assimilation of East German immigrants in West Germany. We find that East German immigrants are more likely to be employed, and to hold higher-paying jobs, when socially connected to the West prior to emigrating. East Germans immigrants with pre-migration networks also appear to be more integrated into their Western host communities than movers without preexisting social ties.

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Bibliographic Info

Paper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 0811.

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Date of creation: Nov 2008
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Handle: RePEc:san:crieff:0811

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Keywords: mergers and acquisitions; abnormal returns; value-ambiguity; unlisted firms; method of payment.;

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  1. Matt Jackson, 2003. "The Effects of Social Networks on Employment and Inequality," Theory workshop papers, UCLA Department of Economics 658612000000000032, UCLA Department of Economics.
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  8. Kaivan Munshi, 2003. "Networks In The Modern Economy: Mexican Migrants In The U.S. Labor Market," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 118(2), pages 549-599, May.
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  11. Stephen P. Jenkins & Carlos GarcÌa-Serrano, 2004. "The Relationship between Unemployment Benefits and Re-employment Probabilities: Evidence from Spain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 66(2), pages 239-260, 05.
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Cited by:
  1. Mitze, Timo & Reinkowski, Janina, 2010. "Testing the Validity of the Neoclassical Migration Model: Overall and Age-Group Specific Estimation Results for German Spatial Planning Regions," MPRA Paper 23616, University Library of Munich, Germany.
  2. Warin Thierry & Blakely Andrew, 2012. "Choice or Mimetism in the Decision to Migrate? A European Illustration," Global Economy Journal, De Gruyter, De Gruyter, vol. 12(2), pages 1-32, June.

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