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Social Determinants of Labor Market Status of Ethnic Minorities in Britain

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  • Kahanec, Martin

    () (Central European University)

  • Mendola, Mariapia

    () (University of Milan Bicocca)

Abstract

The labor market outcomes of ethnic minorities in advanced societies and their dependence on social relationships and membership in social networks are important empirical issues with significant policy consequences. We use detailed micro-data on multiple-origin ethnic minorities in England and Wales and a discrete choice model to investigate these issues. We find that the core family structure and contacts with parents and children away (in Britain) increases the probability of self-employment. On the other hand, engagement in organizational social networks is more likely to channel the same people into paid employment. Finally, disaggregating different types of social networks along their compositional characteristics, we find that having ethnic friends is positively associated with the likelihood to be self-employed while integration in mixed or non-ethnic social networks facilitates paid employment among minority individuals. These findings hint at a positive role of social integration on employment opportunities of ethnic communities in host societies.

Suggested Citation

  • Kahanec, Martin & Mendola, Mariapia, 2007. "Social Determinants of Labor Market Status of Ethnic Minorities in Britain," IZA Discussion Papers 3146, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp3146
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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. 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.
    3. 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.
    4. 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.
    5. Gil Epstein & Odelia Heizler, 2014. "Ethnosizing Immigrants: A Theoretical Framework," CReAM Discussion Paper Series 1441, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    6. 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.
    7. Guzi, Martin & Kahanec, Martin & Kureková, Lucia Mýtna, 2015. "What Explains Immigrant-Native Gaps in European Labor Markets: The Role of Institutions," IZA Discussion Papers 8847, Institute for the Study of Labor (IZA).
    8. Margherita Comola & Mariapia Mendola, 2013. "The Formation of Migrant Networks," Development Working Papers 353, Centro Studi Luca d'Agliano, University of Milano.
    9. Araujo, Luis & Minetti, Raoul, 2011. "Knowledge sharing and the dynamics of social capital," European Economic Review, Elsevier, vol. 55(8), pages 1109-1119.

    More about this item

    Keywords

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

    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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