Social Networks and the Labour Market Mismatch

Eleni Kalfa () and Matloob Piracha
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Eleni Kalfa: University of Kent

No 9493, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper assesses the extent to which social contacts and ethnic concentration affect the education-occupation mismatch of natives and immigrants. Using Australian panel data and employing a dynamic random effects probit model, we show that social capital exacerbates the incidence of over-education, particularly for females. Furthermore, for the foreign-born, ethnic concentration significantly increases the incidence of over-education. Using an alternative index, we also show that social participation, friends and support and ethnic concentration are the main contributors in generating a mismatch, while reciprocity and trust does not seem to have any effect on over-education for both, immigrants and natives. Finally, we show that social networks are more beneficial for the relatively better educated.

Keywords: over-education; ethnic concentration; social capital (search for similar items in EconPapers)
JEL-codes: F22 J61 Z13 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2015-11
New Economics Papers: this item is included in nep-lab, nep-mig, nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: Journal of Population Economics, 2018, 31(3), 877-914

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Journal Article: Social networks and the labour market mismatch (2018)
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