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An empirical analysis of the role of immigrant networks on legalization in the United States

Author

Listed:
  • Gihoon Hong

    (Indiana University South Bend)

  • Soyoung Lee

    (Indiana Wesleyan University)

Abstract

This paper examines the importance of immigrant networks on the likelihood of obtaining a U.S. immigrant visa. In order to control for the endogeneity arising from the formation of migration networks, we exploit variation in historical settlement patterns of earlier immigrants. Using panel data from the Mexican Migration Project, we find that the size of immigrant network at the destination is strongly positively related to the propensity to apply for a U.S. visa. In addition, estimating a hazard model of visa approval reveals that the wait time for visa approval is inversely associated with the size of the visa applicant's migration network at the destination in the case of employment-based applications. The results indicate that in addition to improving its members' earning potentials directly in the labor market, migration networks confer non-pecuniary benefits attached to legal status.

Suggested Citation

  • Gihoon Hong & Soyoung Lee, 2015. "An empirical analysis of the role of immigrant networks on legalization in the United States," Economics Bulletin, AccessEcon, vol. 35(4), pages 2317-2325.
    • Handle: RePEc:ebl:ecbull:eb-14-00847
    as

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    References listed on IDEAS

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    1. David McKenzie & Hillel Rapoport, 2010. "Self-Selection Patterns in Mexico-U.S. Migration: The Role of Migration Networks," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 811-821, November.
    2. Kaivan Munshi, 2003. "Networks in the Modern Economy: Mexican Migrants in the U. S. Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(2), pages 549-599.
    3. Jaap H. Abbring & Gerard J. Van Den Berg, 2007. "The unobserved heterogeneity distribution in duration analysis," Biometrika, Biometrika Trust, vol. 94(1), pages 87-99.
    4. Gihoon Hong, 2015. "Examining the U.S. Labor Market Performance of Immigrant Workers in the Presence of Network Effects," Journal of Labor Research, Springer, vol. 36(1), pages 9-26, March.
    5. Per-Anders Edin & Peter Fredriksson & Olof Åslund, 2003. "Ethnic Enclaves and the Economic Success of Immigrants—Evidence from a Natural Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 329-357.
    6. Demirgüç-Kunt, Asli & Córdova, Ernesto López & Pería, María Soledad Martínez & Woodruff, Christopher, 2011. "Remittances and banking sector breadth and depth: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 95(2), pages 229-241, July.
    7. Jesúús Fernández-Huertas Moraga, 2011. "New Evidence on Emigrant Selection," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 72-96, February.
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    Keywords

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    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • F2 - International Economics - - International Factor Movements and International Business

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