IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/12735.html

The labor market integration of refugees to the United States: Do entrepreneurs in the network help?

Author

Listed:
  • Mayda, Anna Maria
  • Maystadt, Jean-François
  • Dagnelie, Olivier

Abstract

We investigate whether entrepreneurs in the network of refugees - from the same country of origin - help refugees' labor-market integration by hiring them in their businesses. We analyze the universe of refugee cases without U.S. ties who were resettled in the United States between 2005 and 2010. We address threats to identi cation due to sorting of refugees into specifi c labor markets and to strategic placement by resettlement agencies. We fi nd that the probability that refugees are employed 90 days after arrival is positively a ffected by the number of business owners in their network, but negatively a ffected by the number of those who are employees. This suggests that network members who are entrepreneurs hire refugees in their business, while network members working as employees compete with them, consistent with refugees complementing the former and substituting for the latter.

Suggested Citation

  • Mayda, Anna Maria & Maystadt, Jean-François & Dagnelie, Olivier, 2018. "The labor market integration of refugees to the United States: Do entrepreneurs in the network help?," CEPR Discussion Papers 12735, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:12735
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP12735
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Melitz, Jacques & Toubal, Farid, 2014. "Native language, spoken language, translation and trade," Journal of International Economics, Elsevier, vol. 93(2), pages 351-363.
    2. Brian Bell & Stephen Machin, 2013. "Immigrant Enclaves And Crime," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 118-141, February.
    3. George J. Borjas, 2021. "The Economic Benefits from Immigration," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 13, pages 411-430, World Scientific Publishing Co. Pte. Ltd..
    4. David H. Autor & David Dorn, 2013. "The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market," American Economic Review, American Economic Association, vol. 103(5), pages 1553-1597, August.
    5. Robert W. Fairlie, 2013. "Minority and immigrant entrepreneurs: access to financial capital," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 8, pages 153-175, Edward Elgar Publishing.
    6. Michael A. Clemens, 2017. "Violence, Development, and Migration Waves: Evidence from Central American Child Migrant Apprehensions - Working Paper 459," Working Papers 459, Center for Global Development.
    7. Chiswick, Barry R & Miller, Paul W, 1995. "The Endogeneity between Language and Earnings: International Analyses," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 246-288, April.
    8. Laura Jaitman & Stephen Machin, 2013. "Crime and immigration: new evidence from England and Wales," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.
    9. Antoni Calvó-Armengol & Matthew O. Jackson, 2004. "The Effects of Social Networks on Employment and Inequality," American Economic Review, American Economic Association, vol. 94(3), pages 426-454, June.
    10. George J. Borjas, 2000. "Issues in the Economics of Immigration," NBER Books, National Bureau of Economic Research, Inc, number borj00-1, December.
    11. Fredrik Andersson & Mónica García-Pérez & John Haltiwanger & Kristin McCue & Seth Sanders, 2014. "Workplace Concentration of Immigrants," Demography, Springer;Population Association of America (PAA), vol. 51(6), pages 2281-2306, December.
    12. Kristin F. Butcher & Anne Morrison Piehl, 1998. "Cross-city evidence on the relationship between immigration and crime," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 17(3), pages 457-493.
    13. George J. Borjas, 2000. "The Economic Progress of Immigrants," NBER Chapters, in: Issues in the Economics of Immigration, pages 15-50, National Bureau of Economic Research, Inc.
    14. Kaivan Munshi, 2014. "Community Networks and the Process of Development," Journal of Economic Perspectives, American Economic Association, vol. 28(4), pages 49-76, Fall.
    15. William R. Kerr & Martin Mandorff, 2023. "Social Networks, Ethnicity, and Entrepreneurship," Journal of Human Resources, University of Wisconsin Press, vol. 58(1), pages 183-220.
    16. George J. Borjas, 2000. "Introduction to "Issues in the Economics of Immigration"," NBER Chapters, in: Issues in the Economics of Immigration, pages 1-14, National Bureau of Economic Research, Inc.
    17. Borjas, George J. (ed.), 2000. "Issues in the Economics of Immigration," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226066318, September.
    18. Parag Mahajan & Dean Yang, 2020. "Taken by Storm: Hurricanes, Migrant Networks, and US Immigration," American Economic Journal: Applied Economics, American Economic Association, vol. 12(2), pages 250-277, April.
    19. Christian Dustmann & Francesca Fabbri, 2003. "Language proficiency and labour market performance of immigrants in the UK," Economic Journal, Royal Economic Society, vol. 113(489), pages 695-717, July.
    20. Chiswick, Barry R, 1991. "Speaking, Reading, and Earnings among Low-Skilled Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 149-170, April.
    21. Kalena E. Cortes, 2004. "Are Refugees Different from Economic Immigrants? Some Empirical Evidence on the Heterogeneity of Immigrant Groups in the United States," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 465-480, May.
    22. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
    23. Lori A. Beaman, 2012. "Social Networks and the Dynamics of Labour Market Outcomes: Evidence from Refugees Resettled in the U.S," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(1), pages 128-161.
    24. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2010. "Social Incentives in the Workplace," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(2), pages 417-458.
    25. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2009. "Social Connections and Incentives in the Workplace: Evidence From Personnel Data," Econometrica, Econometric Society, vol. 77(4), pages 1047-1094, July.
    26. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-1418, December.
    27. Olof Åslund & Lena Hensvik & Oskar Nordström Skans, 2014. "Seeking Similarity: How Immigrants and Natives Manage in the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 32(3), pages 405-441.
    28. Brian Bell & Francesco Fasani & Stephen Machin, 2013. "Crime and Immigration: Evidence from Large Immigrant Waves," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1278-1290, October.
    29. Sarah Dolfin & Garance Genicot, 2010. "What Do Networks Do? The Role of Networks on Migration and “Coyote” Use," Review of Development Economics, Wiley Blackwell, vol. 14(2), pages 343-359, May.
    30. 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.
    31. Fairlie, Robert W. & Lofstrom, Magnus, 2013. "Immigration and Entrepreneurship," IZA Discussion Papers 7669, IZA Network @ LISER.
    32. Rohner, Dominic & Couttenier, Mathieu & Preotu, Veronica, 2016. "The Violent Legacy of Victimization: Post-Conflict Evidence on Asylum Seekers, Crimes and Public Policy in Switzerland," CEPR Discussion Papers 11079, C.E.P.R. Discussion Papers.
    33. Brian Bell & Stephen Machin, 2013. "Immigration and crime," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 19, pages 353-372, Edward Elgar Publishing.
    34. Jörg L. Spenkuch, 2014. "Understanding the Impact of Immigration on Crime," American Law and Economics Review, American Law and Economics Association, vol. 16(1), pages 177-219.
    35. Laura Giuliano & David I. Levine & Jonathan Leonard, 2009. "Manager Race and the Race of New Hires," Journal of Labor Economics, University of Chicago Press, vol. 27(4), pages 589-631, October.
    36. 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.
    37. Laura Ansala & Olof Åslund & Matti Sarvimäki, 2022. "Immigration history, entry jobs and the labor market integration of immigrants [Immigration in American economic history]," Journal of Economic Geography, Oxford University Press, vol. 22(3), pages 581-604.
    38. Laura Giuliano & David I. Levine & Jonathan Leonard, 2011. "Racial Bias in the Manager-Employee Relationship: An Analysis of Quits, Dismissals, and Promotions at a Large Retail Firm," Journal of Human Resources, University of Wisconsin Press, vol. 46(1), pages 26-52.
    39. Giovanni Mastrobuoni & Paolo Pinotti, 2015. "Legal Status and the Criminal Activity of Immigrants," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 175-206, April.
    40. Clemens, Michael A., 2021. "Violence, development, and migration waves: Evidence from Central American child migrant apprehensions," Journal of Urban Economics, Elsevier, vol. 124(C).
    41. Cortes, Kalena E., 2004. "Are Refugees Different from Economic Immigrants? Some Empirical Evidence on the Heterogeneity of Immigrant Groups in the United States," IZA Discussion Papers 1063, IZA Network @ LISER.
    42. Anna Piil Damm, 2009. "Ethnic Enclaves and Immigrant Labor Market Outcomes: Quasi-Experimental Evidence," Journal of Labor Economics, University of Chicago Press, vol. 27(2), pages 281-314, April.
    43. Matthew Freedman & Emily Owens & Sarah Bohn, 2018. "Immigration, Employment Opportunities, and Criminal Behavior," American Economic Journal: Economic Policy, American Economic Association, vol. 10(2), pages 117-151, May.
    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. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    2. Lars Ludolph, 2021. "The Value of Formal Host-Country Education for the Labour Market Position of Refugees: Evidence from Austria," CESifo Working Paper Series 9241, CESifo.
    3. Ludolph, Lars, 2023. "The value of formal host-country education for the labour market position of refugees: evidence from Austria," LSE Research Online Documents on Economics 117392, London School of Economics and Political Science, LSE Library.
    4. Willis, Sébastien, 2025. "Workplace segregation and the labour market performance of immigrants," Labour Economics, Elsevier, vol. 93(C).
    5. Dehos, Fabian T., 2021. "The refugee wave to Germany and its impact on crime," Regional Science and Urban Economics, Elsevier, vol. 88(C).
    6. Ludolph, Lars, 2023. "The value of formal host-country education for the labour market position of refugees: Evidence from Austria," Economics of Education Review, Elsevier, vol. 92(C).
    7. Becker, Sascha O. & Ferrara, Andreas, 2019. "Consequences of forced migration: A survey of recent findings," Labour Economics, Elsevier, vol. 59(C), pages 1-16.
    8. Amuedo-Dorantes, Catalina & Bansak, Cynthia & Pozo, Susan, 2018. "Refugee Admissions and Public Safety: Are Refugee Settlement Areas More Prone to Crime?," IZA Discussion Papers 11612, IZA Network @ LISER.
    9. Sébastien Willis, 2022. "Workplace Segregation and the Labour Market Performance of Immigrants," CESifo Working Paper Series 9895, CESifo.
    10. Glitz, Albrecht, 2014. "Ethnic segregation in Germany," Labour Economics, Elsevier, vol. 29(C), pages 28-40.
    11. Piopiunik, Marc & Ruhose, Jens, 2017. "Immigration, regional conditions, and crime: Evidence from an allocation policy in Germany," European Economic Review, Elsevier, vol. 92(C), pages 258-282.
    12. Perihan Ozge Saygin & Andrea Weber & Michèle A. Weynandt, 2021. "Coworkers, Networks, and Job-Search Outcomes among Displaced Workers," ILR Review, Cornell University, ILR School, vol. 74(1), pages 95-130, January.
    13. Parsons, Christopher & Reysenbach, Tyler & Wahba, Jackline, 2020. "Network Sorting and Labor Market Outcomes: Evidence from the Chaotic Dispersal of the Viet Kieu," IZA Discussion Papers 13952, IZA Network @ LISER.
    14. Francesco Fasani & Tommaso Frattini & Luigi Minale, 2022. "(The Struggle for) Refugee integration into the labour market: evidence from Europe [Cashier or consultant? Entry labor market conditions, field of study, and career success]," Journal of Economic Geography, Oxford University Press, vol. 22(2), pages 351-393.
    15. Francesco Fasani, 2018. "Immigrant crime and legal status: evidence from repeated amnesty programs," Journal of Economic Geography, Oxford University Press, vol. 18(4), pages 887-914.
    16. Glitz, Albrecht, 2017. "Coworker networks in the labour market," Labour Economics, Elsevier, vol. 44(C), pages 218-230.
    17. Ran Abramitzky & Leah Boustan, 2017. "Immigration in American Economic History," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1311-1345, December.
    18. Clotilde Mahé & Sergio Parra-Cely, 2021. "Panic? Probing Angst over Immigration and Crime," DEM Discussion Paper Series 21-04, Department of Economics at the University of Luxembourg.
    19. Arendt, Jacob Nielsen & Bolvig, Iben, 2023. "Trade-offs between work-first and language-first strategies for refugees," Economics of Education Review, Elsevier, vol. 92(C).
    20. Luca Nunziata, 2015. "Immigration and crime: evidence from victimization data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(3), pages 697-736, July.

    More about this item

    Keywords

    ;
    ;
    ;

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:cpr:ceprdp:12735. 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: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    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.