Social Networks in Determining Migration and Labor Market Outcomes: Evidence from the German Reunification

Helmut Rainer and Thomas Siedler

No 811, CRIEFF Discussion Papers from Centre for Research into Industry, Enterprise, Finance and the Firm

Abstract: This paper empirically examines social network explanations for migration decisions in the context of the German reunification. Using longitudinal data from the German Socio-Economic Panel, we first show that the presence of family and friends in West Germany is an important predictor for the migration hazard rate of East Germans. We then explore whether pre-migration networks have a discernible impact on the economic and social assimilation of East German immigrants in West Germany. We find that East German immigrants are more likely to be employed, and to hold higher-paying jobs, when socially connected to the West prior to emigrating. East Germans immigrants with pre-migration networks also appear to be more integrated into their Western host communities than movers without preexisting social ties.

Keywords: mergers and acquisitions; abnormal returns; value-ambiguity; unlisted firms; method of payment. (search for similar items in EconPapers)
JEL-codes: C23 J61 (search for similar items in EconPapers)
Date: 2008-11
New Economics Papers: this item is included in nep-lab, nep-mig and nep-soc
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Citations: View citations in EconPapers (3)

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Working Paper: Social networks in determining migration and labour market outcomes: evidence from the German reunification (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:san:crieff:0811

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