Seeking Similarity: How Immigrants and Natives Manage in the Labor Market

Abstract

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Social Networks, Employee Selection, and Labor Market Outcomes

“…To further substantiate the validity 3 An extensive literature building on Rees (1966) and Granovetter (1973) however suggests that social contacts are important in the job search process (see Ioannides and Loury (2004) for a survey). More recent work include Aslund et al (2013), Bayer et al (2008), Beaman and Magruder (2012), Bentolila et al (2010), Brown et al (2012), Cingano and Rosolia (2012), Dustmann et al (2011), Galenianos (2011, Kramarz and Skans, Kramarz and Thesmar (2006), see section 2 for a detailed discussion regarding results therein. It is also well documented that inbreeding (or "'homophily"') is a fundamental phenomenon of social networks (McPherson et al, 2001;Currarini et al, 2009).…”

“…Accounting for potential correlations between abilities and network size or quality does 4 See Cingano and Rosolia (2012), Glitz (2013) and Aslund et al (2013) for recent empirical papers on co-worker networks.…”

Social Networks, Ethnicity, and Entrepreneurship

“…Minorities are put at a disadvantage in industries where market interaction is important, and are consequently driven out of these sectors; a group speaking only a minority language would for example have a hard time competing in an industry such as academia. 4 Discrimination 3 The complementarity between social interaction and skill acquisition can be derived in several ways. First, if people derive utility from spending time in the presence of friends, mentoring friends may provide more utility than mentoring non-friends.…”

Immigrant Entrepreneurship

“…In unclear cases we used the city of birth variable (POBCITY) to resolve con ‡icts. 15 Kerr et al (2015b) further aggregates these into 10 country groups: [1] China, Hong Kong, and Macao, [2] India, Pakistan, and Bangladesh, [3] other Asian countries, [4] English-speaking countries, [5] Russia and former member states of the Soviet Union, [6] other European countries, [7] Middle East, [8] Africa, [9] Central and South America, and [10] other countries. A detailed breakdown of the country codes is available from the authors by request.…”