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Social Contacts and the Economic Performance of Immigrants: A Panel Study of Immigrants in Germany

Author

Listed:
  • Kanas, Agnieszka

    (Utrecht University)

  • Chiswick, Barry R.

    (George Washington University)

  • van der Lippe, Tanja

    (Utrecht University)

  • van Tubergen, Frank

    (Utrecht University)

Abstract

Using data from the German Socio-Economic Panel, we examined the impact of social contacts on immigrant occupational status and income. In addition to general social contacts, we also analyzed the effects of bonding (i.e., co-ethnic) and bridging (i.e., interethnic) ties on economic outcomes. Results show that general social contacts have a positive effect on the occupational status and, in particular, annual income of immigrants. We also find that bridging ties with Germans lead to higher occupational status, but not to increased income. These effects remain visible even when social contacts are measured (at least) one year prior to the economic outcomes, as well as when earlier investments in German human capital are considered. Finally, we show that co-ethnic concentration in the region of residence weakly affects economic returns to German language proficiency and schooling.

Suggested Citation

  • Kanas, Agnieszka & Chiswick, Barry R. & van der Lippe, Tanja & van Tubergen, Frank, 2011. "Social Contacts and the Economic Performance of Immigrants: A Panel Study of Immigrants in Germany," IZA Discussion Papers 5775, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp5775
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    References listed on IDEAS

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    1. Catalina Amuedo-Dorantes & Kusum Mundra, 2007. "Social networks and their impact on the earnings of Mexican Migrants," Demography, Springer;Population Association of America (PAA), vol. 44(4), pages 849-863, November.
    2. Ganzeboom, H.B.G. & de Graaf, P.M. & Treiman, D.J. & de Leeuw, J., 1992. "A standard international socio-economic index of occupational status," WORC Paper 92.01.001/1, Tilburg University, Work and Organization Research Centre.
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    Keywords

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    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
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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