The effect of social networks on migrants' labor market integration : a natural experiment

Klarita Gërxhani (European University Institute), Yuliya Kosyakova (IAB, University of Mannheim)

Empirically identifying the causal effect of social networks on migrants' economic prospects is a challenging task due to the non-random residential sorting of migrants into locations with greater opportunities for (previous) connections. Our study addresses this selection-bias issue by using a unique natural-experimental dataset of refugees and other migrants that were exogenously allocated to their first place of residence by German authorities. The empirical results reveal a positive causal effect of social networks on migrants' transition rate to the first job, but only if the networks are mobilized for the job search.

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Year of publication:	20 January 2019
Authors:	Gërxhani, Klarita ; Kosyakova, Yuliya
Publisher:	Nürnberg : Institute for Employment Research of the Federal Employment Agency
Subject:	first-generation migrants \| labor market \| natural experiment \| network social capital \| refugees \| Soziales Netzwerk \| Social network \| Migranten \| Migrants \| Sozialkapital \| Social capital \| Arbeitsmarkt \| Labour market \| Flüchtlinge \| Refugees \| Arbeitsmigranten \| Migrant workers \| Arbeitsmarktintegration \| Labour market integration \| Experiment \| Soziale Integration \| Social integration