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The Role of Social Ties in the Job Search of Recent Immigrants

  • Goel, Deepti
  • Lang, Kevin

We show that among workers whose network is weaker than formal (nonnetwork) channels, those finding a job through the network should have higher wages than those finding a job through formal channels. Moreover, this wage differential is decreasing in network strength. We test these implications using a survey of recent immigrants into Canada. At least at the lower end of an individual’s wage distribution above his reservation wage, finding a network job is associated with higher wages for those with weak networks, and the interaction between network strength and finding a job through the network is negative as predicted.

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File URL: http://www.clsrn.econ.ubc.ca/workingpapers/CLSRN%20Working%20Paper%20no.%205%20-%20Goel%20&%20Lang.pdf
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Paper provided by Vancouver School of Economics in its series CLSSRN working papers with number clsrn_admin-2009-12.

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Length: 45 pages
Date of creation: 02 Feb 2009
Date of revision: 02 Feb 2009
Handle: RePEc:ubc:clssrn:clsrn_admin-2009-12
Contact details of provider: Web page: http://www.clsrn.econ.ubc.ca/

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