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Social Networks and the Labour Market Mismatch

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  • Kalfa, Eleni

    () (University of Kent)

  • Piracha, Matloob

    () (University of Kent)

Abstract

This paper assesses the extent to which social contacts and ethnic concentration affect the education-occupation mismatch of natives and immigrants. Using Australian panel data and employing a dynamic random effects probit model, we show that social capital exacerbates the incidence of over-education, particularly for females. Furthermore, for the foreign-born, ethnic concentration significantly increases the incidence of over-education. Using an alternative index, we also show that social participation, friends and support and ethnic concentration are the main contributors in generating a mismatch, while reciprocity and trust does not seem to have any effect on over-education for both, immigrants and natives. Finally, we show that social networks are more beneficial for the relatively better educated.

Suggested Citation

  • Kalfa, Eleni & Piracha, Matloob, 2015. "Social Networks and the Labour Market Mismatch," IZA Discussion Papers 9493, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp9493
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    References listed on IDEAS

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    More about this item

    Keywords

    social capital; ethnic concentration; over-education;

    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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