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Social Ties and the Job Search of Recent Immigrants

Author

Listed:
  • Deepti Goel

    () (Delhi School of Economics)

  • Kevin Lang

    () (Boston University and NBER, IZA)

Abstract

We show that increasing the probability of obtaining a job offer through the network should raise the observed mean wage in jobs found through formal (non-network) channels relative to that in jobs found through the network. This prediction also holds at all percentiles of the observed wage distribution, except the highest and lowest. The largest changes are likely to occur below the median. We test and confirm these implications using a survey of recent immigrants to Canada. We also develop a simple structural model, consistent with the theoretical model, and show that it can replicate the broad patterns in the data. For recent immigrants, our results are consistent with the primary effect of strong networks being to increase the arrival rate of offers rather than to alter the distribution from which offers are drawn.

Suggested Citation

  • Deepti Goel & Kevin Lang, 2010. "Social Ties and the Job Search of Recent Immigrants," CReAM Discussion Paper Series 1022, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  • Handle: RePEc:crm:wpaper:1022
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    References listed on IDEAS

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    Cited by:

    1. Luciana Méndez Errico, 2013. "The Impacts of Social Networks on Immigrants’ Employment Prospects: The Spanish Case 1997-2007," Working Papers wpdea1301, Department of Applied Economics at Universitat Autonoma of Barcelona.
    2. Catia Batista & Francesco Cestari, 2016. "Migrant intentions to return: The role of migrant social networks," NOVAFRICA Working Paper Series wp1602, Universidade Nova de Lisboa, Faculdade de Economia, NOVAFRICA.
    3. Christian Dustmann & Albrecht Glitz & Uta Schönberg & Herbert Brücker, 2016. "Referral-based Job Search Networks," Review of Economic Studies, Oxford University Press, vol. 83(2), pages 514-546.
    4. Lorenzo Cappellari & Konstantinos Tatsiramos, 2010. "Friends’ Networks and Job Finding Rates," DISCE - Quaderni dell'Istituto di Economia dell'Impresa e del Lavoro ieil0059, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    5. Deepti Goel & Kevin Lang, 2009. "Social Ties and the Job Search of Recent Immigrants," NBER Working Papers 15186, National Bureau of Economic Research, Inc.
    6. Xin, Guangyi, 2017. "Social Interaction and Labour Market Outcomes," MPRA Paper 80976, University Library of Munich, Germany.
    7. Semih Tumen, 2017. "Career choice and the strength of weak ties," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 17(3), pages 1-91–97.
    8. Catia Batista & Francesco Cestari, 2016. "Migrant intentions to return: The role of migrant social networks," FEUNL Working Paper Series novaf:wp1602, Universidade Nova de Lisboa, Faculdade de Economia.
    9. Ian M. Schmutte, 2015. "Job Referral Networks and the Determination of Earnings in Local Labor Markets," Journal of Labor Economics, University of Chicago Press, vol. 33(1), pages 1-32.
    10. Tommaso Colussi, 2013. "Migrant Networks and Job Search Outcomes: Evidence from Displaced Workers," Working Papers 706, Queen Mary University of London, School of Economics and Finance.
    11. Schmutte, Ian M., 2016. "Labor markets with endogenous job referral networks: Theory and empirical evidence," Labour Economics, Elsevier, vol. 42(C), pages 30-42.
    12. Audra J. Bowlus & Masashi Miyairi & Chris Robinson, 2016. "Immigrant job search assimilation in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 49(1), pages 5-51, February.
    13. repec:taf:jdevst:v:53:y:2017:i:11:p:1806-1821 is not listed on IDEAS
    14. Dang, Duc Anh, 2015. "Social Networks and Employment Performances: Evidence from Rural – Urban Migration in Vietnam," MPRA Paper 67479, University Library of Munich, Germany.
    15. Furtado Delia & Theodoropoulos Nikolaos, 2010. "Why Does Intermarriage Increase Immigrant Employment? The Role of Networks," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-33, November.
    16. Michele Battisti & Giovanni Peri & Agnese Romiti, 2016. "Dynamic Effects of Co-Ethnic Networks on Immigrants' Economic Success," NBER Working Papers 22389, National Bureau of Economic Research, Inc.
    17. Josue Ortega & Philipp Hergovich, 2017. "The Strength of Absent Ties: Social Integration via Online Dating," Papers 1709.10478, arXiv.org.
    18. Nicodemo, Catia & Nicolini, Rosella, 2012. "Random or Referral Hiring: When Social Connections Matter," IZA Discussion Papers 6312, Institute for the Study of Labor (IZA).
    19. Glitz, Albrecht, 2017. "Coworker networks in the labour market," Labour Economics, Elsevier, vol. 44(C), pages 218-230.
    20. Patacchini, Eleonora & Zenou, Yves, 2012. "Ethnic networks and employment outcomes," Regional Science and Urban Economics, Elsevier, vol. 42(6), pages 938-949.
    21. Simone Cremaschi & Carlo Devillanova, 2016. "Immigrants and Legal Status: Do Personal Contacts Matter?," CReAM Discussion Paper Series 1629, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    22. Arceo-Gómez, Eva Olimpia, 2012. "Job Search, Networks, and Labor Market Performance of Immigrants," MPRA Paper 44533, University Library of Munich, Germany.
    23. Isabelle Chort, 2017. "Migrant Network and Immigrants’ Occupational Mismatch," Journal of Development Studies, Taylor & Francis Journals, vol. 53(11), pages 1806-1821, November.
    24. Cappellari, Lorenzo & Tatsiramos, Konstantinos, 2011. "Friends’ networks and job finding rates," ISER Working Paper Series 2011-21, Institute for Social and Economic Research.
    25. Enrique Fernández-Macías & Rafael Grande & Alberto Rey Poveda & José-Ignacio Antón, 2015. "Employment and Occupational Mobility among Recently Arrived Immigrants: The Spanish Case 1997–2007," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 34(2), pages 243-277, April.

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    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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