Education, reputation or network? Evidence on migrant workers employability
The strong adverse selection that immigrants face in hosting labour markets may induce them to adopt some behaviours or signals to modify employers' beliefs. Relevant mechanisms for reaching this purpose are personal reputation; exploiting ethnic networks deeply rooted in the hosting country; and high educational levels used as an indirect signal of productivity. On this last point, the immigrant status needs a stronger signal compared to that necessary for a native worker, and this may lead the immigrant to accept job qualifications which are lower than those achievable through the embodied educational level. The aim of the paper is to investigate whether the above mentioned mechanisms are adopted by immigrants in Italy, a crucial country for EU immigration flows, and if they are useful in increasing immigrants' likelihood of employment. The empirical analysis has been conducted using the dataset from a national Labour Force Survey which provides information on thousands of documented immigrants. We estimate a logit model for immigrants' likelihood of being employed, focusing on the above mentioned mechanisms: reputation, ethnic networks and educational level. Moreover we concentrate on the interaction effects of the mechanisms and investigate whether one of them wins on the others. Results show that each of the three mechanisms is statistically and economically significant and exerts positive influence: all factors contribute to increase the immigrant's probability of being employed. Anyway, a high level of education increases the probability of being employed more than the belonging to ethnic networks deeply rooted in Italy. The specific embodied capital of workers matter relatively more. This is relevant for labour public policies in this specific realm since the human capital lever is a possible direct target in various public policies and private human capital investments.
Volume (Year): 39 (2010)
Issue (Month): 1 (January)
|Contact details of provider:|| Web page: http://www.elsevier.com/locate/inca/620175|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- H. Battu & P. J. Sloane, 2004.
"Over-Education and Ethnic Minorities in Britain,"
University of Manchester, vol. 72(4), pages 535-559, 07.
- Battu, Harminder & Sloane, Peter J., 2002. "Overeducation and Ethnic Minorities in Britain," IZA Discussion Papers 650, Institute for the Study of Labor (IZA).
- Dominique M. Gross & Nicolas Schmitt, 2006. "Why do Low- and High-Skill Workers Migrate? Flow Evidence from France," CESifo Working Paper Series 1797, CESifo Group Munich.
- Green, Colin & Kler, Parvinder & Leeves, Gareth, 2007. "Immigrant overeducation: Evidence from recent arrivals to Australia," Economics of Education Review, Elsevier, vol. 26(4), pages 420-432, August.
- Parvinder Kler, 2007. "A panel data investigation into over-education among tertiary educated Australian immigrants," Journal of Economic Studies, Emerald Group Publishing, vol. 34(3), pages 179-193, August.
- Kifle, Temesgen, 2009. "The effect of immigration on the earnings of native-born workers: Evidence from Australia," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 350-356, March.
- James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
- Riley, John G, 1979. "Informational Equilibrium," Econometrica, Econometric Society, vol. 47(2), pages 331-359, March.
- John G. Riley, 1976. "Informational Equilibrium," UCLA Economics Working Papers 071, UCLA Department of Economics.
- Kenneth J. Arrow, 1998. "What Has Economics to Say about Racial Discrimination?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 91-100, Spring.
- Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
- Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(3), pages 355-374. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:soceco:v:39:y:2010:i:1:p:64-71. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.