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The effect of social networks on migrants' labor market integration : a natural experiment

Author

Listed:
  • Gërxhani, Klarita

    (European University Institute)

  • Kosyakova, Yuliya

    (Institute for Employment Research (IAB), Nuremberg, Germany ; Univ. Mannheim)

Abstract

"Empirically identifying the causal effect of social networks on migrants' economic prospects is a challenging task due to the non-random residential sorting of migrants into locations with greater opportunities for (previous) connections. Our study addresses this selection-bias issue by using a unique natural-experimental dataset of refugees and other migrants that were exogenously allocated to their first place of residence by German authorities. The empirical results reveal a positive causal effect of social networks on migrants' transition rate to the first job, but only if the networks are mobilized for the job search." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Gërxhani, Klarita & Kosyakova, Yuliya, 2020. "The effect of social networks on migrants' labor market integration : a natural experiment," IAB-Discussion Paper 202003, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:202003
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    File URL: https://doku.iab.de/discussionpapers/2020/dp0320.pdf
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    References listed on IDEAS

    as
    1. Chiswick, Barry R., 1999. "Are Immigrants Favorably Self-Selected? An Economic Analysis," Working Papers 147, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    2. Barry Chiswick, 1999. "Are Immigrants Favorably Self-Selected?," American Economic Review, American Economic Association, vol. 89(2), pages 181-185, May.
    3. Albrecht Glitz, 2012. "The Labor Market Impact of Immigration: A Quasi-Experiment Exploiting Immigrant Location Rules in Germany," Journal of Labor Economics, University of Chicago Press, vol. 30(1), pages 175-213.
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    Cited by:

    1. Illing, Hannah & Koch, Theresa, 2021. "Who Suffers the Greatest Loss? Costs of Job Displacement for Migrants and Natives," IAB-Discussion Paper 202108, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; ausländische Arbeitnehmer ; Aussiedler ; Auswirkungen ; berufliche Integration ; Einkommenseffekte ; Einwanderer ; Einwanderungspolitik ; ethnische Gruppe ; Geflüchtete ; Juden ; regionale Verteilung ; IAB-SOEP-Migrationsstichprobe ; soziales Netzwerk ; Sozialkapital ; Arbeitsuche ; 2015-2015;
    All these 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
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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