Work

Immigrant Networks and Their Implications for Occupational Choice and Wages

Year: 2012

Type: article

Abstract: Occupational shares of various ethnic groups have grew tremendously in regional U.S. labor markets from 1980 to 2000. Using U.S. Census data, we examine the extent to which this growth is attributed to network effects by studying the relationship between the occupational choice of recently arrived immigrants with those of established immigrants from the same country, We find strong evidence of network effects. First, new arrivals are choosing the same occupations as their compatriots, a decision that is operating at the regional level. Second, individuals who choose the most common occupation of their compatriots enjoy a large and positive earnings effect.

Source: The Review of Economics and Statistics

DOI: 10.1162/rest_a_00327

Authors: Krishna Patel, Francis Vella

Institutions: Federal Deposit Insurance Corporation, IZA - Institute of Labor Economics, Georgetown University

Language: English

Topic: Migration and Labor Dynamics

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities

Open Access status: green

Funder: Rheinische Friedrich-Wilhelms-Universität Bonn