IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Social Involvement and Level of Household Income among Immigrants: New Evidence from the Israeli Experience

  • Arbel, Yuval

    ()

    (School of Business, Carmel Academic Center)

  • Tobol, Yossi

    ()

    (Jerusalem College of Technology (JTC))

  • Siniver, Erez

    ()

    (College of Management, Rishon Lezion Campus)

Previous studies of immigrant populations suggest that ceteris paribus (after controlling for the number of years in the receiving country and other socio-demographic variables), the level of income is strongly and positively correlated with fluency in the local language. Based on a phone survey held in 2005 among a representative sample of Former Soviet Union (FSU) immigrants, the current study extends this literature and investigates the possibility that the standard model is misspecified. Unlike previous surveys, our dataset includes detailed subjective questions on the degree of social involvement. Our findings indeed support the conclusion that the standard model is misspecified. At 1% significance level, immigrants who are better assimilated within the receiving country are 11% more likely to attain a level of income that is equal to or higher than the average level of net family monthly income. Moreover, compared to the incorrectly-specified model, at 1% significance level a shift from lower to intermediate and high level of language proficiency does not significantly increase the level of income. Consequently, marginal probabilities of income shift, which have been mistakenly attributed to better language proficiency in the misspecified model, should have been, in fact, attributed to a higher level of social involvement. Finally, stratification of the sample based on gender and marital status shows that compared to unmarried females, married males have a higher return on social involvement. Among married men (unmarried women) a higher level of social involvement significantly increases the chances for higher income level by 15% (only 4%). Research findings thus stress the important role of better social involvement, particularly among married males: a higher degree of social involvement leads to improved social networking and, in turn, to better job opportunities and higher income.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://ftp.iza.org/dp6416.pdf
Download Restriction: no

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6416.

as
in new window

Length: 25 pages
Date of creation: Mar 2012
Date of revision:
Publication status: published in: International Journal of Manpower, 2014, 35(6), 798-816.
Handle: RePEc:iza:izadps:dp6416
Contact details of provider: Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information: Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:


References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Weiss, Y. & Gotlibovski, M., 1995. "Immigration, Search and Loss of Kill," Papers 34-95, Tel Aviv.
  2. Barry R. Chiswick & Paul W. Miller, 2008. "Occupational Attainment And Immigrant Economic Progress In Australia," Economics Discussion / Working Papers 08-03, The University of Western Australia, Department of Economics.
  3. Cohen Goldner, Sarit & Eckstein, Zvi, 2002. "Labor Mobility of Immigrants: Training, Experience, Language and Opportunities," IZA Discussion Papers 519, Institute for the Study of Labor (IZA).
  4. Geoffrey Carliner, 1981. "Wage Differences by Language Group and the Market for Language Skills in Canada," Journal of Human Resources, University of Wisconsin Press, vol. 16(3), pages 384-399.
  5. Rachel M. Friedberg, 2001. "The Impact Of Mass Migration On The Israeli Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1373-1408, November.
  6. Chiswick, Barry R. & Miller, Paul W., 2009. "The international transferability of immigrants' human capital," Economics of Education Review, Elsevier, vol. 28(2), pages 162-169, April.
  7. McManus, Walter S, 1985. "Labor Market Costs of Language Disparity: An Interpretation of Hispanic Earnings Differences," American Economic Review, American Economic Association, vol. 75(4), pages 818-27, September.
  8. M. van Leuvensteijn & Pierre Koning, 2004. "The Effect of Home-ownership on Labor Mobility in The Netherlands," Working Papers 04-01, Utrecht School of Economics.
  9. David Card, 1989. "The Impact of the Mariel Boatlift on the Miami Labor Market," NBER Working Papers 3069, National Bureau of Economic Research, Inc.
  10. Duleep, Harriet & Regets, Mark, 2002. "The Elusive Concept of Immigrant Quality: Evidence from 1970-1990," IZA Discussion Papers 631, Institute for the Study of Labor (IZA).
  11. Chiuri, Maria Concetta & Jappelli, Tullio, 2003. "Financial market imperfections and home ownership: A comparative study," European Economic Review, Elsevier, vol. 47(5), pages 857-875, October.
  12. Cohen Goldner, Sarit & Eckstein, Zvi, 2004. "Estimating the Return to Training and Occupational Experience: The Case of Female Immigrants," IZA Discussion Papers 1225, Institute for the Study of Labor (IZA).
  13. Zvi Eckstein & Yoram Weiss, 2004. "On The Wage Growth of Immigrants: Israel, 1990-2000," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 665-695, 06.
  14. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
  15. Chiswick, Barry R & Miller, Paul W, 1995. "The Endogeneity between Language and Earnings: International Analyses," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 246-88, April.
  16. Gilles Grenier, 1984. "The Effects of Language Characteristics on the Wages of Hispanic-American Males," Journal of Human Resources, University of Wisconsin Press, vol. 19(1), pages 35-52.
  17. Nestor Gandelman, 2008. "Female-Headed Households and Homeownership in Latin America," Research Department Publications 3252, Inter-American Development Bank, Research Department.
  18. Friedberg, Rachel M, 2000. "You Can't Take It with You? Immigrant Assimilation and the Portability of Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 221-51, April.
  19. Chiswick, Barry R, 1991. "Speaking, Reading, and Earnings among Low-Skilled Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 149-70, April.
  20. Geoffrey Carliner, 1995. "The Language Ability of U.S. Immigrants: Assimilation and Cohort Effects," NBER Working Papers 5222, National Bureau of Economic Research, Inc.
  21. McManus, Walter & Gould, William & Welch, Finis, 1983. "Earnings of Hispanic Men: The Role of English Language Proficiency," Journal of Labor Economics, University of Chicago Press, vol. 1(2), pages 101-30, April.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp6416. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.