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Social Determinants of Labor Market Status of Ethnic Minorities in Britain

  • Kahanec, Martin

    ()

    (Central European University)

  • Mendola, Mariapia

    ()

    (University of Milan Bicocca)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3146.

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Length: 35 pages
Date of creation: Nov 2007
Date of revision:
Publication status: published in: Research in Labor Economics, 2009, 29, 167-195
Handle: RePEc:iza:izadps:dp3146
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  18. Clark, Kenneth & Drinkwater, Stephen, 1998. "Ethnicity and Self-Employment in Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(3), pages 383-407, August.
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