Social Networks and the Labour Market Mismatch

42 Pages Posted: 16 Nov 2015

See all articles by Eleni Kalfa

Eleni Kalfa

University of Kent - Canterbury Campus

Matloob Piracha

University of Kent - Department of Economics; IZA Institute of Labor Economics

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

JEL Classification: F22, J61, Z13

Suggested Citation

Kalfa, Eleni and Piracha, Matloob, Social Networks and the Labour Market Mismatch. IZA Discussion Paper No. 9493, Available at SSRN: https://ssrn.com/abstract=2690741 or http://dx.doi.org/10.2139/ssrn.2690741

Eleni Kalfa (Contact Author)

University of Kent - Canterbury Campus ( email )

Keynes College
Canterbury, Kent CT2 7NP
United Kingdom

Matloob Piracha

University of Kent - Department of Economics ( email )

Keynes College
Kent, CT2 7NP
United Kingdom

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
53
Abstract Views
559
Rank
681,640
PlumX Metrics