Evidence from German Reunificationthe Role of Social Networks in Determining Migration and Labour Market Outcomes

29 Pages Posted: 8 Oct 2009

See all articles by Helmut Rainer

Helmut Rainer

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Thomas Siedler

University of Hamburg - Faculty of Business, Economics, and Social Sciences; DIW Berlin; Institute for the Study of Labor (IZA); University of Essex

Date Written: 0000

Abstract

This paper empirically examines social network explanations for migration decisions in the context of German reunification. Using longitudinal data from the German Socio-Economic Panel, we first show that the presence of a family in West Germany is an important predictor for the migration hazard rate of East Germans. We then explore whether pre-migration networks have a discernible impact on the economic and social assimilation of East German immigrants in West Germany. We find that East German immigrants are more likely to be employed and to hold higher paying jobs when socially connected to the West prior to emigrating.

Suggested Citation

Rainer, Helmut and Siedler, Thomas, Evidence from German Reunificationthe Role of Social Networks in Determining Migration and Labour Market Outcomes (0000). Economics of Transition, Vol. 17, Issue 4, pp. 739-767, October 2009. Available at SSRN: https://ssrn.com/abstract=1484308 or http://dx.doi.org/10.1111/j.1468-0351.2009.00365.x

Helmut Rainer (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
Munich, 01069
Germany

Thomas Siedler

University of Hamburg - Faculty of Business, Economics, and Social Sciences ( email )

Von-Melle-Park 9
Hamburg, 20146
Germany

DIW Berlin ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

University of Essex ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

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