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The role of social networks in determining migration and labour market outcomes: Evidence from German reunification

Author

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  • Rainer, Helmut
  • Siedler, Thomas

Abstract

This paper empirically examines social network explanations for migration decisions in the context of German reunification. Using longitudinal data from the German Socio-Economic Panel, we first show that the presence of a family in West Germany is an important predictor for the migration hazard rate of East Germans. We then explore whether pre-migration networks have a discernible impact on the economic and social assimilation of East German immigrants in West Germany. We find that East German immigrants are more likely to be employed and to hold higher paying jobs when socially connected to the West prior to emigrating.

Suggested Citation

  • Rainer, Helmut & Siedler, Thomas, 2009. "The role of social networks in determining migration and labour market outcomes: Evidence from German reunification," Munich Reprints in Economics 19783, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:19783
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    Citations

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    Cited by:

    1. Timo Mitze, 2012. "Testing the Neoclassical Migration Model: Overall and Age-Group Specific Results for German Regions," Lecture Notes in Economics and Mathematical Systems, in: Empirical Modelling in Regional Science, edition 127, chapter 0, pages 53-82, Springer.
    2. Bönisch, Peter & Schneider, Lutz, 2010. "Why are East Germans not More Mobile? Analyzing the Impact of Social Ties on Regional Migration," IWH Discussion Papers 16/2010, Halle Institute for Economic Research (IWH).
    3. Caliendo, Marco & Cobb-Clark, Deborah A. & Hennecke, Juliane & Uhlendorff, Arne, 2019. "Locus of control and internal migration," Regional Science and Urban Economics, Elsevier, vol. 79(C).
    4. Dorner, Matthias & Harhoff, Dietmar & Hinz, Tina & Hoisl, Karin & Bender, Stefan, 2016. "Social ties for labor market access - Lessons from the migration of East German inventors," IAB-Discussion Paper 201641, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Peter Huber & Stepan Mikula, 2019. "Social capital and willingness to migrate in post-communist countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 46(1), pages 31-59, February.
    6. Timo Mitze & Janina Reinkowski, 2010. "Testing the Neoclassical Migration Model: Overall and Age-Group Specific Results for German Regions," Ruhr Economic Papers 0226, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    7. Harhoff, Dietmar & Dorner, Matthias & Hinz, Tina & Hoisl, Karin & Bender, Stefan, 2016. "Social Ties for Labor Market Access – Lessons from the Migration of East German Inventors," CEPR Discussion Papers 11601, C.E.P.R. Discussion Papers.
    8. Caliendo, Marco & Cobb-Clark, Deborah A. & Hennecke, Juliane & Uhlendorff, Arne, 2019. "Locus of control and internal migration," Regional Science and Urban Economics, Elsevier, vol. 79(C).
    9. repec:zbw:rwirep:0226 is not listed on IDEAS
    10. Yingxia Pu & Xinyi Zhao & Guangqing Chi & Jin Zhao & Fanhua Kong, 2019. "A spatial dynamic panel approach to modelling the space-time dynamics of interprovincial migration flows in China," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 41(31), pages 913-948.
    11. Mitze, Timo & Reinkowski, Janina, 2010. "Testing the Validity of the Neoclassical Migration Model: Overall and Age-Group Specific Estimation Results for German Spatial Planning Regions," MPRA Paper 23616, University Library of Munich, Germany.
    12. Hyll, Walter & Schneider, Lutz, 2014. "Relative deprivation and migration preferences," Economics Letters, Elsevier, vol. 122(2), pages 334-337.
    13. Nicola Fuchs‐Schündeln & Matthias Schündeln, 2009. "Who stays, who goes, who returns?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 17(4), pages 703-738, October.

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