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Social Determinants of Labor Market Status of Ethnic Minorities in Britain

Author

Listed:
  • Martin Kahanec

    () (IZA)

  • Mariapia Mendola

    () ((University of Milan Bicocca and Centro Studi Luca d\'Agliano)

Abstract

The labor market behavior of ethnic communities in advanced societies and the social determinants of their labor market outcomes are important empirical issues with significant policy consequences. We use direct information on social interactions within multiple-origin ethnic minorities in England and Wales to investigate the ways different network-based social ties influence individual employment outcomes. We find that (i) ‘strong ties’, measured by contacts with parents and children away, increase the probability of self-employment, while ‘weak social ties’, measured by engagement in voluntary organizations, are more likely to channel members of ethnic minorities into paid employment; (ii) ‘ethnic networks’, measured by interactions between individuals of the same ethnicity, are positively associated with the likelihood to be self-employed, while engagement in mixed or non-ethnic social networks facilitates paid employment among minority individuals. These findings hint at a positive role of social integration in the host society on labor market outcomes of ethnic minority groups.

Suggested Citation

  • Martin Kahanec & Mariapia Mendola, 2008. "Social Determinants of Labor Market Status of Ethnic Minorities in Britain," Development Working Papers 253, Centro Studi Luca d'Agliano, University of Milano.
  • Handle: RePEc:csl:devewp:253
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    References listed on IDEAS

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    Citations

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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. Gil Epstein & Odelia Heizler (Cohen), 2015. "Ethnic identity: a theoretical framework," IZA Journal of Migration, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-11, December.
    3. Martin Kahanec & Anzelika Zaiceva & Klaus F. Zimmermann, 2011. "Ethnic Minorities in the European Union: An Overview," Chapters,in: Ethnic Diversity in European Labor Markets, chapter 1 Edward Elgar Publishing.
    4. Araujo, Luis & Minetti, Raoul, 2011. "Knowledge sharing and the dynamics of social capital," European Economic Review, Elsevier, vol. 55(8), pages 1109-1119.
    5. Epstein, Gil S. & Heizler (Cohen), Odelia, 2014. "Ethnosizing Immigrants: A Theoretical Framework," IZA Discussion Papers 8625, Institute for the Study of Labor (IZA).
    6. Margherita Comola & Mariapia Mendola, 2013. "The Formation of Migrant Networks," Development Working Papers 353, Centro Studi Luca d'Agliano, University of Milano.
    7. Martin Kahanec & Anzelika Zaiceva, 2009. "Labor market outcomes of immigrants and non-citizens in the EU: An East-West comparison," International Journal of Manpower, Emerald Group Publishing, vol. 30(1/2), pages 97-115, March.
    8. Lucia Mýtna Kureková, 2015. "What Explains Immigrant-native gaps in European Labor Markets: The Role of Institutions," Discussion Papers 27, Central European Labour Studies Institute (CELSI).
    9. Gil S. Epstein & Odelia Heizler-Cohen, 2016. "The Formation of Immigrant Networks in the Short and the Long Run," Economies, MDPI, Open Access Journal, vol. 4(3), pages 1-16, July.

    More about this item

    Keywords

    labor market; self-employment; ethnic minorities; social ties; ethnic networks;

    JEL classification:

    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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