Social Capital and Immigrants' Labour Market Performance

29 Pages Posted: 23 Mar 2013

See all articles by Matloob Piracha

Matloob Piracha

University of Kent - Department of Economics; IZA Institute of Labor Economics

Massimiliano Tani

University of New South Wales - Australian Defence Force Academy; IZA Institute of Labor Economics

Matias Vaira-Lucero

Macquarie University - Faculty of Business and Economics

Abstract

This paper analyses the role of social capital on immigrants' labour market outcomes. We use the "principal component analysis" (PCA) to build an index of social networks and explore its impact on the probability of getting a job and on wage levels using the Households Income and Labour Dynamics in Australia (HILDA) longitudinal survey data. We find a positive effect of social capital on migrants' employment outcomes and wages, especially for women. Distinguishing employment into blue and white-collar jobs, we find that social capital only affects the probability of getting a white-collar job. These results suggest that promoting opportunities to create social capital has a beneficial effect on migrants' integration in the host country.

Keywords: immigrants, labour market, social capital, HILDA survey, Australia

JEL Classification: F22, J01, J61, Z13

Suggested Citation

Piracha, Matloob and Tani, Massimiliano and Vaira-Lucero, Matias, Social Capital and Immigrants' Labour Market Performance. IZA Discussion Paper No. 7274, Available at SSRN: https://ssrn.com/abstract=2238307

Matloob Piracha (Contact Author)

University of Kent - Department of Economics ( email )

Keynes College
Kent, CT2 7NP
United Kingdom

IZA Institute of Labor Economics ( email )

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

Massimiliano Tani

University of New South Wales - Australian Defence Force Academy ( email )

Sydney, NSW 2052
Australia
+612 6268 8512 (Phone)
+612 6248 8450 (Fax)

HOME PAGE: http://www.unsw.adfa.edu.au/sbus/staff_cvs/about_max_t.html

IZA Institute of Labor Economics

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

Matias Vaira-Lucero

Macquarie University - Faculty of Business and Economics ( email )

NSW 2109
Australia
+61 (0)2 9850 6474 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
22
Abstract Views
313
PlumX Metrics