Social Contacts and the Economic Performance of Immigrants: A Panel Study of Immigrants in Germany

44 Pages Posted: 20 Jun 2011

See all articles by Agnieszka Kanas

Agnieszka Kanas

affiliation not provided to SSRN

Barry R. Chiswick

University of Illinois at Chicago; IZA Institute of Labor Economics

Tanja van der Lippe

Utrecht University - Department of Sociology

Frank van Tubergen

affiliation not provided to SSRN

Abstract

Using data from the German Socio-Economic Panel, we examined the impact of social contacts on immigrant occupational status and income. In addition to general social contacts, we also analyzed the effects of bonding (i.e., co-ethnic) and bridging (i.e., interethnic) ties on economic outcomes. Results show that general social contacts have a positive effect on the occupational status and, in particular, annual income of immigrants. We also find that bridging ties with Germans lead to higher occupational status, but not to increased income. These effects remain visible even when social contacts are measured (at least) one year prior to the economic outcomes, as well as when earlier investments in German human capital are considered. Finally, we show that co-ethnic concentration in the region of residence weakly affects economic returns to German language proficiency and schooling.

Keywords: occupational status, social contacts, immigrants, income, panel data

JEL Classification: F22, J61, Z13

Suggested Citation

Kanas, Agnieszka and Chiswick, Barry R. and van der Lippe, Tanja and van Tubergen, Frank, Social Contacts and the Economic Performance of Immigrants: A Panel Study of Immigrants in Germany. IZA Discussion Paper No. 5775. Available at SSRN: https://ssrn.com/abstract=1867044

Agnieszka Kanas (Contact Author)

affiliation not provided to SSRN

No Address Available

Barry R. Chiswick

University of Illinois at Chicago ( email )

601 S. Morgan Street, Room 2103UH
Chicago, IL 60607-7121
United States
312-996-2683 (Phone)
312-996-3344 (Fax)

IZA Institute of Labor Economics

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

Tanja Van der Lippe

Utrecht University - Department of Sociology ( email )

Heidelberglaan 2
Utrecht, 3584 CS
United States

Frank Van Tubergen

affiliation not provided to SSRN

No Address Available

Register to save articles to
your library

Register

Paper statistics

Downloads
34
Abstract Views
408
PlumX Metrics