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Migrant Networks and Job Search Outcomes: Evidence from Displaced Workers

  • Tommaso Colussi

    ()

    (Queen Mary, University of London and fRDB)

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    This paper investigates how the job search outcomes of displaced migrants are affected by the labor market outcomes of past co-workers of the same nationality. For this exercise I use matched employer-employee micro data on the universe of private-sector employees in Italy between 1975 and 2001. The analysis shows that a 10 percentage point increase in the network employment rate raises the re-employment probability within 36 months after job loss by 5.7 percentage points. The paper also sheds light on the different mechanisms generating the social effect and it highlights the role of migrant networks in explaining immigrant segregation.

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    File URL: http://www.econ.qmul.ac.uk/papers/doc/wp706.pdf
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    Paper provided by Queen Mary University of London, School of Economics and Finance in its series Working Papers with number 706.

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    Date of creation: Jul 2013
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    Handle: RePEc:qmw:qmwecw:wp706
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    1. Albrecht Glitz, 2013. "Coworker networks in the labour market," Economics Working Papers 1400, Department of Economics and Business, Universitat Pompeu Fabra.
    2. David M. Cutler & Edward L. Glaeser & Jacob L. Vigdor, 1997. "The Rise and Decline of the American Ghetto," NBER Working Papers 5881, National Bureau of Economic Research, Inc.
    3. Deepti Goel & Kevin Lang, 2010. "Social Ties and the Job Search of Recent Immigrants," Working Papers id:2932, eSocialSciences.
    4. Michele Pellizzari, 2004. "Do friends and relatives really help in getting a good job?," LSE Research Online Documents on Economics 19980, London School of Economics and Political Science, LSE Library.
    5. Card, David & Devicienti, Francesco & Maida, Agata, 2011. "Rent-Sharing, Hold-up, and Wages: Evidence from Matched Panel Data," IZA Discussion Papers 6086, Institute for the Study of Labor (IZA).
    6. Åslund, Olof & Edin, Per-Anders & Fredriksson, Peter, 2001. "Ethnic Enclaves and the Economic Success of Immigrants - Evidence from a Natural Experiment," CEPR Discussion Papers 2729, C.E.P.R. Discussion Papers.
    7. Yannis M. Ioannides & Linda Datcher Loury, 2002. "Job Information Networks, Neighborhood Effects and Inequality," Discussion Papers Series, Department of Economics, Tufts University 0217, Department of Economics, Tufts University.
    8. Kaivan Munshi, 2003. "Networks In The Modern Economy: Mexican Migrants In The U.S. Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(2), pages 549-599, May.
    9. Edward P. Lazear, 1999. "Culture and Language," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S95-S126, December.
    10. Till von Wachter & Jae Song & Joyce Manchester, 2008. "Long-Term Earnings Losses due to Job Separation During the 1982 Recession: An Analysis Using Longitudinal Administrative Data from 1974 to 2004," Discussion Papers 0708-16, Columbia University, Department of Economics.
    11. Wachter, Till von & Bender, Stefan, 2004. "In the Right Place at the Wrong Time: The Role of Firms and Luck in Young Workers' Careers," IZA Discussion Papers 1348, Institute for the Study of Labor (IZA).
    12. David Card, 2009. "Immigration and Inequality," CReAM Discussion Paper Series 0907, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    13. Tito Boeri & Marta De Philippis & Eleonora Patacchini & Michele Pelizzari, 2010. "Moving to Segregation: Evidence from 8 Italian cities," EIEF Working Papers Series 1109, Einaudi Institute for Economics and Finance (EIEF), revised Apr 2011.
    14. Linda Datcher Loury, 2006. "Some Contacts Are More Equal than Others: Informal Networks, Job Tenure, and Wages," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 299-318, April.
    15. Alessandra Venturini & Claudia Villosio, 2008. "Labour-market assimilation of foreign workers in Italy," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 518-542, Autumn.
    16. Bandiera, Oriana & Barankay, Iwan & Rasul, Imran, 2008. "Social capital in the workplace: Evidence on its formation and consequences," Labour Economics, Elsevier, vol. 15(4), pages 724-748, August.
    17. David Marmaros & Bruce Sacerdote, 2006. "How Do Friendships Form?," The Quarterly Journal of Economics, MIT Press, vol. 121(1), pages 79-119, 02.
    18. Lori A. Beaman, 2012. "Social Networks and the Dynamics of Labour Market Outcomes: Evidence from Refugees Resettled in the U.S," Review of Economic Studies, Oxford University Press, vol. 79(1), pages 128-161.
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