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Social Contacts and the Economic Performance of Immigrants: A Panel Study of Immigrants in G ermany

Author

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  • Agnieszka Kanas
  • Barry R. Chiswick
  • Tanja Lippe
  • Frank Tubergen

Abstract

Using 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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Suggested Citation

  • Agnieszka Kanas & Barry R. Chiswick & Tanja Lippe & Frank Tubergen, 2012. "Social Contacts and the Economic Performance of Immigrants: A Panel Study of Immigrants in G ermany," International Migration Review, Wiley Blackwell, vol. 46(3), pages 680-709, September.
    • Handle: RePEc:bla:intmig:v:46:y:2012:i:3:p:680-709
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    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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