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Do Migrants Get Good Jobs in Australia? The Role of Ethnic Networks in Job Search

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  • Mahuteau, Stephane

    () (University of Adelaide)

  • Junankar, Pramod N. (Raja)

    () (University of New South Wales)

Abstract

We study the role of ethnic networks in migrants’ job search and the quality of jobs they find in the first years of settlement. We find that there are initial downward movements along the occupational ladder, followed by improvements. As a result of restrictions in welfare eligibility since 1997, we study whether this increases the probability that new migrants accept “bad jobs” quickly and then move onto better jobs over time. Holding employability constant, our results support this view. However, accounting for their higher employability, new migrants seem to fare better up to a year and half after settlement.

Suggested Citation

  • Mahuteau, Stephane & Junankar, Pramod N. (Raja), 2008. "Do Migrants Get Good Jobs in Australia? The Role of Ethnic Networks in Job Search," IZA Discussion Papers 3489, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp3489
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    References listed on IDEAS

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    1. Deborah A. Cobb-Clark, 2003. "Public policy and the labor market adjustment of new immigrants to Australia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(4), pages 655-681, November.
    2. Stark, Oded & Wang, You Qiang, 2002. "Migration dynamics," Economics Letters, Elsevier, vol. 76(2), pages 159-164, July.
    3. Linda Datcher Loury, 2004. "Some Job Contacts are More Equal Than Others: Earnings and Job Information Networks," Discussion Papers Series, Department of Economics, Tufts University 0404, Department of Economics, Tufts University.
    4. Cobb-Clark, Deborah A, 2000. "Do Selection Criteria Make a Difference? Visa Category and the Labour Market Status of Immigrants to Australia," The Economic Record, The Economic Society of Australia, vol. 76(232), pages 15-31, March.
    5. Chiswick, Barry R. & Lee, Yew Liang & Miller, Paul W., 2002. "The Determinants of the Geographic Concentration among Immigrants: Application to Australia," IZA Discussion Papers 462, Institute of Labor Economics (IZA).
    6. Yamauchi, Futoshi & Tanabe, Sakiko, 2003. "Nonmarket networks among migrants," FCND briefs 169, International Food Policy Research Institute (IFPRI).
    7. Barry R. Chiswick & Yew Liang Lee & Paul W. Miller, 2002. "Longitudinal Analysis of Immigrant Occupational Mobility: A Test of the Immigrant Assimilation Hypothesis," Economics Discussion / Working Papers 02-08, The University of Western Australia, Department of Economics.
    8. Prem Jung Thapa & Tue Gørgens, 2006. "Finding Employment After Migration: How Long Does It Take?," Chapters,in: Public Policy and Immigrant Settlement, chapter 3 Edward Elgar Publishing.
    9. Harriet Orcutt Duleep & Mark C. Regets, 1996. "Earnings Convergence: Does It Matter Where Immigrants Come From or Why?," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 130-134, April.
    10. Bauer, Thomas K. & Zimmermann, Klaus F., 1999. "Occupational Mobility of Ethnic Migrants," IZA Discussion Papers 58, Institute of Labor Economics (IZA).
    11. P.N. (Raja) Junankar & Stephane Mahuteau, 2005. "Do Migrants Get Good Jobs? New Migrant Settlement in Australia," The Economic Record, The Economic Society of Australia, vol. 81(s1), pages 34-46, August.
    12. Kaivan Munshi, 2003. "Networks in the Modern Economy: Mexican Migrants in the U. S. Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 118(2), pages 549-599.
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    Cited by:

    1. Booth, Alison L. & Leigh, Andrew & Varganova, Elena, 2010. "Does Racial and Ethnic Discrimination Vary Across Minority Groups? Evidence from a Field Experiment," IZA Discussion Papers 4947, Institute of Labor Economics (IZA).
    2. Dipanwita Sarkar & Trevor C. Collier, 2019. "Does host-country education mitigate immigrant inefficiency? Evidence from earnings of Australian university graduates," Empirical Economics, Springer, vol. 56(1), pages 81-106, January.
    3. Naiditch Claire & Vranceanu Radu, 2017. "The Legal Grounds of Irregular Migration: A Global Game Approach," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 17(2), pages 1-10, April.
    4. Enrique Fernández-Macías & Rafael Grande & Alberto Rey Poveda & José-Ignacio Antón, 2015. "Employment and Occupational Mobility among Recently Arrived Immigrants: The Spanish Case 1997–2007," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 34(2), pages 243-277, April.
    5. Baert, Stijn & Cockx, Bart, 2013. "Pure ethnic gaps in educational attainment and school to work transitions: When do they arise?," Economics of Education Review, Elsevier, vol. 36(C), pages 276-294.
    6. Weiping Kostenko & Mark Harris & Xueyan Zhao, 2012. "Occupational transition and country-of-origin effects in the early stage occupational assimilation of immigrants: some evidence from Australia," Applied Economics, Taylor & Francis Journals, vol. 44(31), pages 4019-4035, November.
    7. Vincent Law, 2011. "Welfare Policy and Labour Supply of Immigrants in Australia," Crawford School Research Papers 1109, Crawford School of Public Policy, The Australian National University.
    8. Piracha, Matloob & Tani, Massimiliano & Tchuente, Guy, 2017. "Immigration Policy and Remittance Behaviour," IZA Discussion Papers 10927, Institute of Labor Economics (IZA).
    9. Matloob Piracha & Stephane Mahuteau & Massimiliano Tani, 2010. "Selection Policy and Immigrants’ Remittance Behaviour," Studies in Economics 1003, School of Economics, University of Kent.
    10. Ham, Roger & Junankar, Pramod N. (Raja) & Wells, Robert, 2009. "Occupational Choice: Personality Matters," IZA Discussion Papers 4105, Institute of Labor Economics (IZA).
    11. Castro Campos, Bente, 2013. "Human capital differences or labor market discrimination? The occupational outcomes of ethnic minorities in rural Guizhou (China)," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 73, number 73.
    12. Mahuteau, Stephane & Piracha, Matloob & Tani, Massimiliano & Vaira-Lucero, Matias, 2011. "Immigration Policy and Entrepreneurship," IZA Discussion Papers 6238, Institute of Labor Economics (IZA).
    13. 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.
    14. Kim, Young Chul, 2009. "Lifetime Network Externality and the Dynamics of Group Inequality," MPRA Paper 18767, University Library of Munich, Germany.
    15. A Aggarwal & R Freguglia & G Johnes & G Spricigo, 2011. "Education and labour market outcomes : evidence from India," Working Papers 615663, Lancaster University Management School, Economics Department.
    16. Mahuteau, Stephane & Piracha, Matloob & Tani, Massimiliano & Vaira Lucero, Matias, 2011. "NILS Working paper no 179. Immigration policy and entrepreneurship," NILS Working Papers 26077, National Institute of Labour Studies.
    17. Tani, Massimiliano, 2017. "Skilled Migration Policy and the Labour Market Performance of Immigrants," IZA Discussion Papers 11241, Institute of Labor Economics (IZA).
    18. Castro Campos, Bente, 2014. "Official Ethnic Labels and Non-Agricultural Work in Guizhou (China)," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(2), pages 1-28, May.
    19. repec:bla:gender:v:24:y:2017:i:4:p:376-397 is not listed on IDEAS

    More about this item

    Keywords

    ethnic networks; migrants; job quality; immigration policy;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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