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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, Institute for the Study of Labor (IZA).
  • 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.
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    Cited by:

    1. Simone Cremaschi & Carlo Devillanova, 2016. "Immigrants and Legal Status: Do Personal Contacts Matter?," CReAM Discussion Paper Series 1629, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    2. TAKENAKA Ayumi & ISHIDA Kenji & NAKAMURO Makiko, 2012. "Negative Assimilation: How Immigrants Experience Economic Mobility in Japan," ESRI Discussion paper series 293, Economic and Social Research Institute (ESRI).
    3. Lieselotte Blommaert & Marcel Coenders & Frank Tubergen, 2014. "Ethnic Discrimination in Recruitment and Decision Makers’ Features: Evidence from Laboratory Experiment and Survey Data using a Student Sample," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 116(3), pages 731-754, May.
    4. Chiswick, Barry R. & Miller, Paul W., 2014. "International Migration and the Economics of Language," IZA Discussion Papers 7880, Institute for the Study of Labor (IZA).
    5. Martin Lange & Friedhelm Pfeiffer & Gerard J. den Berg, 2017. "Integrating young male refugees: initial evidence from an inclusive soccer project," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 51(1), pages 1-10, December.
    6. repec:spr:soinre:v:137:y:2018:i:3:d:10.1007_s11205-017-1629-x is not listed on IDEAS
    7. Ayumi Takenaka & Makiko Nakamuro & Kenji Ishida, 2016. "Negative Assimilation: How Immigrants Experience Economic Mobility in Japan," International Migration Review, Wiley Blackwell, vol. 50(2), pages 506-533, June.
    8. Kalfa, Eleni & Piracha, Matloob, 2015. "Social Networks and the Labour Market Mismatch," IZA Discussion Papers 9493, Institute for the Study of Labor (IZA).
    9. Elena Vidal-Coso & Pau Miret-Gamundi, 2014. "The labour trajectories of immigrant women in Spain: Are there signs of upward social mobility?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 31(13), pages 337-380, August.
    10. Bonin, Holger & Rinne, Ulf, 2017. "Machbarkeitsstudie zur Durchführung einer Evaluation der arbeitsmarktpolitischen Integrationsmaßnahmen für Flüchtlinge," IZA Research Reports 76, Institute for the Study of Labor (IZA).
    11. Chiswick, Barry R. & Wang, Zhiling, 2016. "Social Contacts, Dutch Language Proficiency and Immigrant Economic Performance in the Netherlands: A Longitudinal Study," IZA Discussion Papers 9760, Institute for the Study of Labor (IZA).
    12. Scheller, Friedrich, 2017. "The ambiguous role of ethnic context: A multi-level analysis of the relationship between group size and labor market integration of three immigrant groups in Germany," Duisburger Beiträge zur soziologischen Forschung 2017-03, University of Duisburg-Essen, Institute of Sociology.
    13. repec:spr:jopoec:v:31:y:2018:i:3:d:10.1007_s00148-017-0677-5 is not listed on IDEAS
    14. repec:bla:intmig:v:51:y:2017:i:3:p:701-726 is not listed on IDEAS

    More about this item

    Keywords

    panel data; income; occupational status; social contacts; immigrants;

    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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