Social Ties and the Job Search of Recent Immigrants

35 Pages Posted: 28 Jul 2009 Last revised: 1 Jul 2021

See all articles by Deepti Goel

Deepti Goel

School of Arts and Sciences, Azim Premji University

Kevin Lang

Boston University - Department of Economics; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: July 2009

Abstract

We show that increasing the probability of obtaining a job offer through a network should raise the observed wages of workers in jobs found through formal channels relative to those in jobs found through the network. This prediction holds at all percentiles except the highest and lowest. The largest changes are likely to occur below the median of the offer distribution. We test and confirm these implications using a survey of recent immigrants into Canada. We develop a simple structural model consistent with the theoretical model and show that it can replicate the broad patterns in the data. Our results are consistent with the primary effect of network strength being to increase the arrival rate of offers rather than to alter the distribution from which offers are drawn at least among recent immigrants.

Suggested Citation

Goel, Deepti and Lang, Kevin, Social Ties and the Job Search of Recent Immigrants (July 2009). NBER Working Paper No. w15186, Available at SSRN: https://ssrn.com/abstract=1438860

Deepti Goel

School of Arts and Sciences, Azim Premji University

Sarjapur
Undergraduate Campus
Bangalore, 562125
India

Kevin Lang (Contact Author)

Boston University - Department of Economics ( email )

270 Bay State Road
Boston, MA 02215
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
9
Abstract Views
372
PlumX Metrics