The effect of social networks on migrants' labor market integration: A natural experiment

Arbeitspapier

Empirically identifying the causal effect of social networks on migrants' economic prospects is a challenging task due to the non-random residential sorting of migrants into locations with greater opportunities for (previous) connections. Our study addresses this selection-bias issue by using a unique natural-experimental dataset of refugees and other migrants that were exogenously allocated to their first place of residence by German authorities. The empirical results reveal a positive causal effect of social networks on migrants' transition rate to the first job, but only if the networks are mobilized for the job search.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IAB-Discussion Paper ; No. 3/2020

Classification and Topics

• Classification: Wirtschaft ; International Migration ; Transactional Relationships; Contracts and Reputation; Networks ; Geographic Labor Mobility; Immigrant Workers ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
• Subject: first-generation migrants ; labor market ; natural experiment ; network social capital ; refugees

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gërxhani, Klarita ; Kosyakova, Yuliya
• Event: Veröffentlichung
• (who): Institut für Arbeitsmarkt- und Berufsforschung (IAB)
• (where): Nürnberg
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/222388
• Last update: 10.03.2025, 11:41 AM CET