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Social Ties and the Job Search of Recent Immigrants

Author

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  • Goel, Deepti

    () (Delhi School of Economics)

  • Lang, Kevin

    () (Boston University)

Abstract

In this paper we highlight a specific mechanism through which social networks help in job search. We characterize the strength of a network by its likelihood of providing a job offer. Using a theoretical model we show that the wage differential in jobs found using networks versus those found using formal channels, decreases as the network becomes stronger. We verify this result for recent immigrants to Canada for whom a strong network is captured by the presence of a 'close tie.' Furthermore, structural estimates confirm that the presence of a close tie operates by increasing the likelihood of generating a job offer from the network rather than by altering the wage distribution from which an offer is drawn.

Suggested Citation

  • Goel, Deepti & Lang, Kevin, 2016. "Social Ties and the Job Search of Recent Immigrants," IZA Discussion Papers 9942, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp9942
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    References listed on IDEAS

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    Cited by:

    1. Christian Dustmann & Albrecht Glitz & Uta Schönberg & Herbert Brücker, 2016. "Referral-based Job Search Networks," Review of Economic Studies, Oxford University Press, vol. 83(2), pages 514-546.
    2. Deepti Goel & Kevin Lang, 2009. "Social Ties and the Job Search of Recent Immigrants," NBER Working Papers 15186, National Bureau of Economic Research, Inc.
    3. Schmutte, Ian M., 2016. "Labor markets with endogenous job referral networks: Theory and empirical evidence," Labour Economics, Elsevier, vol. 42(C), pages 30-42.
    4. Furtado Delia & Theodoropoulos Nikolaos, 2010. "Why Does Intermarriage Increase Immigrant Employment? The Role of Networks," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-33, November.
    5. 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.
    6. Arceo-Gómez, Eva Olimpia, 2012. "Job Search, Networks, and Labor Market Performance of Immigrants," MPRA Paper 44533, University Library of Munich, Germany.
    7. 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.
    8. Semih Tumen, 2017. "Career choice and the strength of weak ties," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 17(3), pages 1-91–97.
    9. Michele Battisti & Giovanni Peri & Agnese Romiti, 2016. "Dynamic Effects of Co-Ethnic Networks on Immigrants' Economic Success," NBER Working Papers 22389, National Bureau of Economic Research, Inc.
    10. Glitz, Albrecht, 2017. "Coworker networks in the labour market," Labour Economics, Elsevier, vol. 44(C), pages 218-230.
    11. Cappellari, Lorenzo & Tatsiramos, Konstantinos, 2010. "Friends' Networks and Job Finding Rates," IZA Discussion Papers 5240, Institute for the Study of Labor (IZA).
    12. Isabelle Chort, 2017. "Migrant Network and Immigrants’ Occupational Mismatch," Journal of Development Studies, Taylor & Francis Journals, vol. 53(11), pages 1806-1821, November.
    13. Catia Batista & Francesco Cestari, 2016. "Migrant intentions to return: The role of migrant social networks," NOVAFRICA Working Paper Series wp1602, Universidade Nova de Lisboa, Faculdade de Economia, NOVAFRICA.
    14. Xin, Guangyi, 2017. "Social Interaction and Labour Market Outcomes," MPRA Paper 80976, University Library of Munich, Germany.
    15. Josue Ortega & Philipp Hergovich, 2017. "The Strength of Absent Ties: Social Integration via Online Dating," Papers 1709.10478, arXiv.org.
    16. Patacchini, Eleonora & Zenou, Yves, 2012. "Ethnic networks and employment outcomes," Regional Science and Urban Economics, Elsevier, vol. 42(6), pages 938-949.
    17. Tommaso Colussi, 2013. "Migrant Networks and Job Search Outcomes: Evidence from Displaced Workers," Working Papers 706, Queen Mary University of London, School of Economics and Finance.
    18. Audra J. Bowlus & Masashi Miyairi & Chris Robinson, 2016. "Immigrant job search assimilation in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 49(1), pages 5-51, February.
    19. Catia Batista & Francesco Cestari, 2016. "Migrant intentions to return: The role of migrant social networks," FEUNL Working Paper Series novaf:wp1602, Universidade Nova de Lisboa, Faculdade de Economia.
    20. Nicodemo, Catia & Nicolini, Rosella, 2012. "Random or Referral Hiring: When Social Connections Matter," IZA Discussion Papers 6312, Institute for the Study of Labor (IZA).
    21. Ian M. Schmutte, 2015. "Job Referral Networks and the Determination of Earnings in Local Labor Markets," Journal of Labor Economics, University of Chicago Press, vol. 33(1), pages 1-32.
    22. Cappellari, Lorenzo & Tatsiramos, Konstantinos, 2011. "Friends’ networks and job finding rates," ISER Working Paper Series 2011-21, Institute for Social and Economic Research.
    23. 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.
    24. Dang, Duc Anh, 2015. "Social Networks and Employment Performances: Evidence from Rural – Urban Migration in Vietnam," MPRA Paper 67479, University Library of Munich, Germany.

    More about this item

    Keywords

    job search; migration; networks;

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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