Social Capital and Immigrants' Labour Market Performance

Matloob Piracha, Max Tani and Matias Vaira-Lucero

No 7274, IZA Discussion Papers from Institute of Labor Economics (IZA)

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: Australia; HILDA survey; social capital; labour market; immigrants (search for similar items in EconPapers)
JEL-codes: F22 J01 J61 Z13 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2013-03
New Economics Papers: this item is included in nep-lab, nep-mig and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published - published in: Papers in Regional Science, 2016, 95, S107-S126.

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Journal Article: Social capital and immigrants' labour market performance (2016)
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