Social Contacts and the Economic Performance of Immigrants: A Panel Study of Immigrants in Germany

Agnieszka Kanas (), Barry Chiswick, Tanja van der Lippe () and Frank van Tubergen ()
Additional contact information
Agnieszka Kanas: Utrecht University
Tanja van der Lippe: Utrecht University
Frank van Tubergen: Utrecht University

No 5775, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using data from the German Socio-Economic Panel, we examined the impact of social contacts on immigrant occupational status and income. In addition to general social contacts, we also analyzed the effects of bonding (i.e., co-ethnic) and bridging (i.e., interethnic) ties on economic outcomes. Results show that general social contacts have a positive effect on the occupational status and, in particular, annual income of immigrants. We also find that bridging ties with Germans lead to higher occupational status, but not to increased income. These effects remain visible even when social contacts are measured (at least) one year prior to the economic outcomes, as well as when earlier investments in German human capital are considered. Finally, we show that co-ethnic concentration in the region of residence weakly affects economic returns to German language proficiency and schooling.

Keywords: social contacts; occupational status; income; panel data; immigrants (search for similar items in EconPapers)
JEL-codes: F22 J61 Z13 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2011-06
New Economics Papers: this item is included in nep-eur, nep-hme, nep-lab, nep-mig and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published - published in: International Migration Review, 2012, 46 (3), 680-709

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Related works:
Journal Article: Social Contacts and the Economic Performance of Immigrants: A Panel Study of Immigrants in G ermany (2012)
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