Social networks and the labour market mismatch

Eleni Kalfa and Matloob Piracha
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Eleni Kalfa: University of Kent

Journal of Population Economics, 2018, vol. 31, issue 3, No 7, 877-914

Abstract: 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: Social capital; Ethnic concentration; Over-education (search for similar items in EconPapers)
JEL-codes: F22 J61 Z13 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (15)

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Working Paper: Social Networks and the Labour Market Mismatch (2015)
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DOI: 10.1007/s00148-017-0677-5

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