Examining the U.S. Labor Market Performance of Immigrant Workers in the Presence of Network Effects

Gihoon Hong ()

Journal of Labor Research, 2015, vol. 36, issue 1, 9-26

Abstract: Networks are thought to have an important impact on individuals’ access to labor markets. Yet, it is a challenging task to identify network effects because the functioning of networks relies heavily on unobservables that may be correlated with other productivity-related characteristics. In this study, we quantify the importance of networks as a determinant of workers’ labor market outcomes. Using variation in the distance to the nearest Mexican rail lines in the past as a source of identification, we find that the size of the network is positively related to current wages and to the probability of being a documented immigrant. Copyright Springer Science+Business Media New York 2015

Keywords: Network effects; Mexican immigrants; Earnings; J24; J3; J61 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:spr:jlabre:v:36:y:2015:i:1:p:9-26

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DOI: 10.1007/s12122-014-9191-7

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