Social Determinants of Labor Market Status of Ethnic Minorities in Britain

35 Pages Posted: 28 Nov 2007

See all articles by Martin Kahanec

Martin Kahanec

IZA Institute of Labor Economics; Central European University; Central European Labour Studies Institute

Mariapia Mendola

University of Milan - Centro Studi Luca d'Agliano (LdA); Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS); Università degli Studi di Milano-Bicocca - Center for European Studies (CefES)

Date Written: November 2007

Abstract

The labor market outcomes of ethnic minorities in advanced societies and their dependence on social relationships and membership in social networks are important empirical issues with significant policy consequences. We use detailed micro-data on multiple-origin ethnic minorities in England and Wales and a discrete choice model to investigate these issues. We find that the core family structure and contacts with parents and children away (in Britain) increases the probability of self-employment. On the other hand, engagement in organizational social networks is more likely to channel the same people into paid employment. Finally, disaggregating different types of social networks along their compositional characteristics, we find that having ethnic friends is positively associated with the likelihood to be self-employed while integration in mixed or non-ethnic social networks facilitates paid employment among minority individuals. These findings hint at a positive role of social integration on employment opportunities of ethnic communities in host societies.

Keywords: labor market, self-employment, ethnic minorities, social ties

JEL Classification: J7, J15, J21

Suggested Citation

Kahanec, Martin and Mendola, Mariapia, Social Determinants of Labor Market Status of Ethnic Minorities in Britain (November 2007). IZA Discussion Paper No. 3146. Available at SSRN: https://ssrn.com/abstract=1033349

Martin Kahanec (Contact Author)

IZA Institute of Labor Economics ( email )

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Central European University ( email )

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Central European Labour Studies Institute ( email )

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Mariapia Mendola

University of Milan - Centro Studi Luca d'Agliano (LdA) ( email )

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Milano, 20122
Italy

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS) ( email )

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Italy

Università degli Studi di Milano-Bicocca - Center for European Studies (CefES)

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Milano, 20126
Italy

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