Immigrant Birthcountry Networks and Unemployment Duration: Evidence Around the Great Recession

54 Pages Posted: 1 Oct 2016

See all articles by Kusum Mundra

Kusum Mundra

Department of Economics, Rutgers University, Newark

Fernando Rios Avila

Bard College - The Levy Economics Institute

Abstract

Using data from the CPS this paper examines the role of birth-country networks on immigrants' unemployment duration from 2001 to 2013. We find that networks significantly lower unemployment duration for all immigrants. Varying the effect of networks over duration categories we find that networks are more effective in lowering duration for immigrants unemployed for 1-2 months than immigrants who are unemployed for longer periods and this effect is further strengthened during the post recession period. This supports the Calvo-Armengol and Jackson hypothesis which posits that longer the agent is unemployed, less effective are her social networks in job search. Our findings are robust to different specifications.

Keywords: social networks, immigrants, unemployment duration, Great Recession

JEL Classification: J61, J64, D10

Suggested Citation

Mundra, Kusum and Rios Avila, Fernando, Immigrant Birthcountry Networks and Unemployment Duration: Evidence Around the Great Recession. IZA Discussion Paper No. 10233, Available at SSRN: https://ssrn.com/abstract=2846324

Kusum Mundra (Contact Author)

Department of Economics, Rutgers University, Newark ( email )

360 ML King Jr. Blvd.
Newark, NJ 07102
United States

HOME PAGE: http://kmundra.newark.rutgers.edu

Fernando Rios Avila

Bard College - The Levy Economics Institute ( email )

Blithewood, Bard College
Annandale, NY 12504-5000
United States

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