IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp12903.html
   My bibliography  Save this paper

Ethnic Networks and the Employment of Asylum Seekers: Evidence from Germany

Author

Listed:
  • Stips, Felix

    (University of Göttingen)

  • Kis-Katos, Krisztina

    (University of Goettingen)

Abstract

Using novel registry data on the population of asylum seekers in Germany for the period from 2010 to 2016, and quasi-experimental variation induced by German allocation policies, we identify causal effects of the size and composition of local co-national networks on formal labor market access of asylum seekers. While the individual employment probability is not linked to network size, it increases with the number of employed local co-national asylum seekers and decreases with the number of non-employed network members, thereby underlining the central importance of network quality.

Suggested Citation

  • Stips, Felix & Kis-Katos, Krisztina, 2020. "Ethnic Networks and the Employment of Asylum Seekers: Evidence from Germany," IZA Discussion Papers 12903, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp12903
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp12903.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Simone Schüller & Tanika Chakraborty, 2022. "Ethnic enclaves and immigrant economic integration," IZA World of Labor, Institute of Labor Economics (IZA), pages 287-287, March.
    2. Alexander M. Danzer & Firat Yaman, 2013. "Do Ethnic Enclaves Impede Immigrants' Integration? Evidence from a Quasi-experimental Social-interaction Approach," Review of International Economics, Wiley Blackwell, vol. 21(2), pages 311-325, May.
    3. Deepti Goel & Kevin Lang, 2019. "Social Ties and the Job Search of Recent Immigrants," ILR Review, Cornell University, ILR School, vol. 72(2), pages 355-381, March.
    4. Burns, Justine & Godlonton, Susan & Keswell, Malcolm, 2010. "Social networks, employment and worker discouragement: Evidence from South Africa," Labour Economics, Elsevier, vol. 17(2), pages 336-344, April.
    5. Paulo Guimarães & Pedro Portugal, 2010. "A simple feasible procedure to fit models with high-dimensional fixed effects," Stata Journal, StataCorp LP, vol. 10(4), pages 628-649, December.
    6. George J. Borjas, 2021. "Ethnic Capital And Intergenerational Mobility," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 6, pages 107-134, World Scientific Publishing Co. Pte. Ltd..
    7. Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760, Elsevier.
    8. 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.
    9. Marianne Bertrand & Erzo F. P. Luttmer & Sendhil Mullainathan, 2000. "Network Effects and Welfare Cultures," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 1019-1055.
    10. Edward P. Lazear, 1999. "Culture and Language," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 95-126, December.
    11. Wahba, Jackline & Zenou, Yves, 2005. "Density, social networks and job search methods: Theory and application to Egypt," Journal of Development Economics, Elsevier, vol. 78(2), pages 443-473, December.
    12. Battisti, Michele & Giesing, Yvonne & Laurentsyeva, Nadzeya, 2019. "Can job search assistance improve the labour market integration of refugees? Evidence from a field experiment," Labour Economics, Elsevier, vol. 61(C).
    13. Gehrsitz, Markus & Ungerer, Martin, 2017. "Jobs, Crime, and Votes: A Short-run Evaluation of the Refugee Crisis in Germany," IZA Discussion Papers 10494, Institute of Labor Economics (IZA).
    14. King, Gary & Zeng, Langche, 2001. "Logistic Regression in Rare Events Data," Political Analysis, Cambridge University Press, vol. 9(2), pages 137-163, January.
    15. Schaffner, Sandra & Treude, Barbara, 2014. "The Effect of Ethnic Clustering on Migrant Integration in Germany," Ruhr Economic Papers 536, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    16. 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.
    17. Patacchini, Eleonora & Zenou, Yves, 2012. "Ethnic networks and employment outcomes," Regional Science and Urban Economics, Elsevier, vol. 42(6), pages 938-949.
    18. Síle O'Dorchai & Robert Plasman & François Rycx, 2007. "The part‐time wage penalty in European countries: how large is it for men?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 28(7), pages 571-603, October.
    19. Bauer, Thomas & Zimmermann, Klaus F., 1997. "Unemployment and wages of ethnic Germans," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(Supplemen), pages 361-377.
    20. Deepti Goel & Kevin Lang, 2009. "Social Ties and the Job Search of Recent Immigrants," NBER Working Papers 15186, National Bureau of Economic Research, Inc.
    21. 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.
    22. 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.
    23. Aslund, Olof, 2005. "Now and forever? Initial and subsequent location choices of immigrants," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 141-165, March.
    24. Semih Tumen, 2015. "The use of natural experiments in migration research," IZA World of Labor, Institute of Labor Economics (IZA), pages 191-191, October.
    25. Michele Battisti & Giovanni Peri & Agnese Romiti, 2022. "Dynamic Effects of Co-Ethnic Networks on Immigrants’ Economic Success," The Economic Journal, Royal Economic Society, vol. 132(641), pages 58-88.
    26. Giorgio Topa, 2001. "Social Interactions, Local Spillovers and Unemployment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(2), pages 261-295.
    27. Dehos, Fabian T., 2017. "The refugee wave to Germany and its impact on crime," Ruhr Economic Papers 737, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    28. Treude, Barbara, 2014. "The Effect of Ethnic Clustering on Migrant Integration in Germany," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100584, Verein für Socialpolitik / German Economic Association.
    29. 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.
    30. Danzer, Alexander M. & Yaman, Firat, 2016. "Ethnic concentration and language fluency of immigrants: Evidence from the guest-worker placement in Germany," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PA), pages 151-165.
    31. Andersson, Henrik, 2018. "Ethnic Enclaves, Self-Employment and the Economic Performance of Refugees," Working Paper Series 2018:7, Uppsala University, Department of Economics.
    32. Xenia Frei & Jan Kluge, 2016. "Die Wohnsitzauflage als kostspielige Integrationsbremse für Flüchtlinge," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 23(06), pages 30-34, December.
    33. David M. Cutler & Edward L. Glaeser, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(3), pages 827-872.
    34. Síle O'Dorchai & Robert Plasman & François Rycx, 2007. "The part-time wage penalty in European countries: how large is it for men?," International Journal of Manpower, Emerald Group Publishing, vol. 28(7), pages 571-603, November.
    35. Tu, Jiong, 2010. "The Effect of Enclave Residence on the Labour Force Activities of Immigrants in Canada," IZA Discussion Papers 4744, Institute of Labor Economics (IZA).
    36. Zenou, Yves, 2012. "Networks in Economics," CEPR Discussion Papers 9021, C.E.P.R. Discussion Papers.
    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. Felix Stips & Krisztina Kis-Katos, 2020. "The impact of co-national networks on asylum seekers’ employment: Quasi-experimental evidence from Germany," PLOS ONE, Public Library of Science, vol. 15(8), pages 1-22, August.
    2. Eric Schuss, 2020. "Do Ethnic Networks Ameliorate Education–Occupation Mismatch?," LABOUR, CEIS, vol. 34(4), pages 441-476, December.
    3. Deepti Goel & Kevin Lang, 2019. "Social Ties and the Job Search of Recent Immigrants," ILR Review, Cornell University, ILR School, vol. 72(2), pages 355-381, March.
    4. Michele Battisti & Giovanni Peri & Agnese Romiti, 2022. "Dynamic Effects of Co-Ethnic Networks on Immigrants’ Economic Success," The Economic Journal, Royal Economic Society, vol. 132(641), pages 58-88.
    5. Alexander M. Danzer & Carsten Feuerbaum & Marc Piopiunik & Ludger Woessmann, 2022. "Growing up in ethnic enclaves: language proficiency and educational attainment of immigrant children," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(3), pages 1297-1344, July.
    6. Patacchini, Eleonora & Zenou, Yves, 2012. "Ethnic networks and employment outcomes," Regional Science and Urban Economics, Elsevier, vol. 42(6), pages 938-949.
    7. Tito Boeri & Marta De Philippis & Eleonora Patacchini & Michele Pellizzari, 2015. "Immigration, Housing Discrimination and Employment," Economic Journal, Royal Economic Society, vol. 125(586), pages 82-114, August.
    8. Delia Furtado & Nikolaos Theodoropoulos, 2009. "Intermarriage and Immigrant Employment: The Role of Networks," RF Berlin - CReAM Discussion Paper Series 0906, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    9. repec:zbw:rwirep:0536 is not listed on IDEAS
    10. Zenou, Yves & Biavaschi, Costanza & Giulietti, Corrado, 2021. "Social Networks and (Political) Assimilation in the Age of Mass Migration," CEPR Discussion Papers 16182, C.E.P.R. Discussion Papers.
    11. Laliberté, Jean-William, 2019. "Language skill acquisition in immigrant social networks: Evidence from Australia," Labour Economics, Elsevier, vol. 57(C), pages 35-45.
    12. Johan Klaesson & Özge Öner & Dieter Pennerstorfer, 2023. "Do co-ethnic commuters disseminate labor market information? Evidence from geocoded register data," Economics working papers 2023-16, Department of Economics, Johannes Kepler University Linz, Austria.
    13. Schaffner, Sandra & Treude, Barbara, 2014. "The Effect of Ethnic Clustering on Migrant Integration in Germany," Ruhr Economic Papers 536, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    14. Damm, Anna Piil, 2014. "Neighborhood quality and labor market outcomes: Evidence from quasi-random neighborhood assignment of immigrants," Journal of Urban Economics, Elsevier, vol. 79(C), pages 139-166.
    15. Engdahl, Mattias & Willis, Sébastien & Åslund, Olof, 2024. "Professional networks and the labour market assimilation of immigrants," Working Paper Series 2024:9, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    16. 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.
    17. Olof Åslund & Per-Anders Edin & Peter Fredriksson & Hans Grönqvist, 2011. "Peers, Neighborhoods, and Immigrant Student Achievement: Evidence from a Placement Policy," American Economic Journal: Applied Economics, American Economic Association, vol. 3(2), pages 67-95, April.
    18. Glitz, Albrecht, 2017. "Coworker networks in the labour market," Labour Economics, Elsevier, vol. 44(C), pages 218-230.
    19. 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.
    20. 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.

    More about this item

    Keywords

    dispersal policies; Germany; employment; refugees; social networks;
    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
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    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:iza:izadps:dp12903. 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: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    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.