TY  - GEN
AB  - In this study we investigate the link between the job search channels that workers use
to find employment and the probability of occupational mismatch in the new job. Our specific
focus is on differences between native and immigrant workers. We use data from the
German Socio-Economic Panel (SOEP) over the period 2000-2014. First, we document that
referral hiring via social networks is the most frequent single channel of generating jobs in
Germany; in relative terms referrals are used more frequently by immigrant workers compared
to natives. Second, our data reveals that referral hiring is associated with the highest
rate of occupational mismatch among all channels in Germany. We combine these findings
and use them to develop a theoretical search and matching model with two ethnic groups of
workers (natives and immigrants), two search channels (formal and referral hiring) and two
occupations. When modeling social networks we take into account ethnic and professional
homophily in the link formation. Our model predicts that immigrant workers face stronger
risk of unemployment and often rely on recommendations from their friends and relatives as
a channel of last resort. Furthermore, higher rates of referral hiring produce more frequent
occupational mismatch of the immigrant population compared to natives. We test this prediction
empirically and confirm that more intensive network hiring contributes significantly
to higher rates of occupational mismatch among immigrants. Finally, we document that the
gaps in the incidence of referrals and mismatch rates are reduced among second generation
immigrants indicating some degree of integration in the German labour market.
DA  - 2019
DO  - 10.4119/unibi/2934697
KW  - job search
KW  - referrals
KW  - social networks
KW  - occupational mismatch
KW  - immigration
LA  - eng
PY  - 2019
SN  - 2196-2723
TI  - Immigration, Social Networks and Occupational Mismatch
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29346971
Y2  - 2024-11-22T02:25:43
ER  -