IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v165y2023i1d10.1007_s11205-022-03002-8.html
   My bibliography  Save this article

Social Capital and Its Returns as an Explanation for Early Labor Market Success of Majority and Minority Members in the Netherlands

Author

Listed:
  • Ids Baalbergen

    (Utrecht University)

  • Eva Jaspers

    (Utrecht University)

Abstract

This paper tests whether social capital can explain differences in labor market success between ethnic majority and minority members. To overcome problems of reverse causality—labor market success is not only the result of social capital, but also leads to better networks—the focus is on adolescents who enter the labor market. Data from the ‘Children of Immigrants Longitudinal Survey’ are used (N = 2574) and matched to register data from Statistics Netherlands. Hypotheses are tested with structural equation models and a longitudinal approach. Two different mechanisms are tested: the capital deficit and the return deficit. Ethnic majority and minority members do not differ in social capital, thus refuting the capital deficit hypothesis. However, for majority members, the upper reachability of their social capital negatively affects chances of unemployment and positively affects chances of having a permanent contract. For minority members, no such effects were observed, indicating that the same level of social capital that benefits majorities, does not benefit minorities. More research into the return deficit minority members face is needed.

Suggested Citation

  • Ids Baalbergen & Eva Jaspers, 2023. "Social Capital and Its Returns as an Explanation for Early Labor Market Success of Majority and Minority Members in the Netherlands," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(1), pages 53-76, January.
    • Handle: RePEc:spr:soinre:v:165:y:2023:i:1:d:10.1007_s11205-022-03002-8
    DOI: 10.1007/s11205-022-03002-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-022-03002-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11205-022-03002-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Holzer, Harry J, 1987. "Informal Job Search and Black Youth Unemployment," American Economic Review, American Economic Association, vol. 77(3), pages 446-452, June.
    2. Jan C. van Ours & Justus Veenman, 2003. "The educational attainment of second-generation immigrants in The Netherland," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(4), pages 739-753, November.
    3. Miles Corak, 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 79-102, Summer.
    4. Michele Pellizzari, 2010. "Do Friends and Relatives Really Help in Getting a Good Job?," ILR Review, Cornell University, ILR School, vol. 63(3), pages 494-510, April.
    5. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-579, November.
    6. McCormick, Tyler H. & Salganik, Matthew J. & Zheng, Tian, 2010. "How Many People Do You Know?: Efficiently Estimating Personal Network Size," Journal of the American Statistical Association, American Statistical Association, vol. 105(489), pages 59-70.
    7. Gregg, Paul, 2001. "The Impact of Youth Unemployment on Adult Unemployment in the NCDS," Economic Journal, Royal Economic Society, vol. 111(475), pages 626-653, November.
    8. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christofides, Louis N. & Pashardes, Panos, 2002. "Self/paid-employment, public/private sector selection, and wage differentials," Labour Economics, Elsevier, vol. 9(6), pages 737-762, December.
    2. Sami Napari, 2008. "The Early‐career Gender Wage Gap among University Graduates in the Finnish Private Sector," LABOUR, CEIS, vol. 22(4), pages 697-733, December.
    3. Cattaneo, Maria Alejandra & Wolter, Stefan C., 2012. "Migration Policy Can Boost PISA Results: Findings from a Natural Experiment," IZA Discussion Papers 6300, Institute of Labor Economics (IZA).
    4. Adam Pilny, 2017. "Explaining Differentials in Subsidy Levels Among Hospital Ownership Types in Germany," Health Economics, John Wiley & Sons, Ltd., vol. 26(5), pages 566-581, May.
    5. Ben Jann, 2008. "A Stata implementation of the Blinder-Oaxaca decomposition," ETH Zurich Sociology Working Papers 5, ETH Zurich, Chair of Sociology, revised 14 May 2008.
    6. Chen, Yiu Por (Vincent) & Zhang, Yuan, 2018. "A decomposition method on employment and wage discrimination and its application in urban China (2002–2013)," World Development, Elsevier, vol. 110(C), pages 1-12.
    7. Raitano, Michele & Vona, Francesco, 2021. "Nepotism vs. Specific Skills: The effect of professional liberalization on returns to parental background of Italian lawyers," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 489-505.
    8. Richard Mussa, 2013. "Rural--urban differences in parental spending on children's primary education in Malawi," Development Southern Africa, Taylor & Francis Journals, vol. 30(6), pages 789-811, December.
    9. Keita, Moussa, 2014. "Contribution des inobservables aux disparités de genre dans la scolarisation et le travail des enfants au Mali [Contribution of unobservables to gender disparities in schooling and child labor in M," MPRA Paper 57532, University Library of Munich, Germany.
    10. Picard, Pierre M. & Zenou, Yves, 2015. "Urban Spatial Structure, Employment and Social Ties: European versus American Cities," IZA Discussion Papers 9166, Institute of Labor Economics (IZA).
    11. Matuszewska-Janica Aleksandra, 2018. "Differences in Men’s and Women’s Wages in the Education Sector in the Baltic Sea Region States," Folia Oeconomica Stetinensia, Sciendo, vol. 18(1), pages 157-168, June.
    12. Yun Liang & John Gibson, 2017. "Location or Hukou: What Most Limits Fertility of Urban Women in China?," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 4(3), pages 527-540, September.
    13. Guido Friebel & Matthias Heinz & Mitchell Hoffman & Nick Zubanov, 2023. "What Do Employee Referral Programs Do? Measuring the Direct and Overall Effects of a Management Practice," Journal of Political Economy, University of Chicago Press, vol. 131(3), pages 633-686.
    14. Sonja C. Kassenboehmer & Mathias G. Sinning, 2014. "Distributional Changes in the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 67(2), pages 335-361, April.
    15. Zhang, Li & Sharpe, Rhonda Vonshay & Li, Shi & Darity, William A., 2016. "Wage differentials between urban and rural-urban migrant workers in China," China Economic Review, Elsevier, vol. 41(C), pages 222-233.
    16. Jean-Baptiste Vilain, 2018. "Three essays in applied economics [Trois essais en économie appliquée]," SciencePo Working papers Main tel-03419493, HAL.
    17. Battu, Harminder & Seaman, Paul & Zenou, Yves, 2011. "Job contact networks and the ethnic minorities," Labour Economics, Elsevier, vol. 18(1), pages 48-56, January.
    18. Jacqueline Agesa & Richard Agesa, 1999. "Gender differences in the incidence of rural to urban migration: Evidence from Kenya," Journal of Development Studies, Taylor & Francis Journals, vol. 35(6), pages 36-58.
    19. S. C. Noah Uhrig & Nicole Watson, 2020. "The Impact of Measurement Error on Wage Decompositions: Evidence From the British Household Panel Survey and the Household, Income and Labour Dynamics in Australia Survey," Sociological Methods & Research, , vol. 49(1), pages 43-78, February.
    20. William M. Rodgers, 2006. "Male White‐Black Wage Gaps, 1979‐1994: A Distributional Analysis," Southern Economic Journal, John Wiley & Sons, vol. 72(4), pages 773-793, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:165:y:2023:i:1:d:10.1007_s11205-022-03002-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.