Social Ties and the Job Search of Recent Immigrants

42 Pages Posted: 1 Jun 2016

See all articles by Deepti Goel

Deepti Goel

School of Arts and Sciences, Azim Premji University

Kevin Lang

Boston University - Department of Economics; National Bureau of Economic Research (NBER)

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Abstract

In this paper we highlight a specific mechanism through which social networks help in job search. We characterize the strength of a network by its likelihood of providing a job offer. Using a theoretical model we show that the wage differential in jobs found using networks versus those found using formal channels, decreases as the network becomes stronger. We verify this result for recent immigrants to Canada for whom a strong network is captured by the presence of a 'close tie.' Furthermore, structural estimates confirm that the presence of a close tie operates by increasing the likelihood of generating a job offer from the network rather than by altering the wage distribution from which an offer is drawn.

Keywords: job search, migration, networks

JEL Classification: J3

Suggested Citation

Goel, Deepti and Lang, Kevin, Social Ties and the Job Search of Recent Immigrants. IZA Discussion Paper No. 9942, Available at SSRN: https://ssrn.com/abstract=2786026

Deepti Goel (Contact Author)

School of Arts and Sciences, Azim Premji University

Sarjapur
Undergraduate Campus
Bangalore, 562125
India

Kevin Lang

Boston University - Department of Economics ( email )

270 Bay State Road
Boston, MA 02215
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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