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Immigrant Networks and Their Implications for Occupational Choice and Wages

Krishna Patel and Francis Vella
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Krishna Patel: Federal Deposit Insurance Corporation

The Review of Economics and Statistics, 2013, vol. 95, issue 4, 1249-1277

Abstract: Occupational shares of various ethnic groups have grew tremendously in regional U.S. labor markets from 1980 to 2000. Using U.S. Census data, we examine the extent to which this growth is attributed to network effects by studying the relationship between the occupational choice of recently arrived immigrants with those of established immigrants from the same country, We find strong evidence of network effects. First, new arrivals are choosing the same occupations as their compatriots, a decision that is operating at the regional level. Second, individuals who choose the most common occupation of their compatriots enjoy a large and positive earnings effect. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Keywords: network effects; immigrants; occupational choice; earnings (search for similar items in EconPapers)
JEL-codes: J24 J3 J61 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (81)

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Working Paper: Immigrant Networks and Their Implications for Occupational Choice and Wages (2007) Downloads
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The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

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