Review of Economic Studies Vol. 79 No. 1 2012
Social Networks and the Dynamics of Labour Market Outcomes: Evidence from Refugees Resettled in the U.S.
Abstract
This paper examines the dynamic implications of social networks for the labour market outcomes of refugees resettled in the U.S. A theoretical model of job information transmission shows that the relationship between social network size and labour market outcomes is heterogeneous and depends on the vintage of network members: an increase in network size can negatively impact some cohorts in a network while benefiting others. To test this prediction, I use new data on political refugees resettled in the U.S. and exploit the fact that these refugees are distributed across cities by a resettlement agency, precluding individuals from sorting. The results indicate that an increase in the number of social network members resettled in the same year or one year prior to a new arrival leads to a deterioration of outcomes, while a greater number of tenured network members improves the probability of employment and raises the hourly wage.
- DOI
- 10.1093/restud/rdr017
- Volume
- 79
- Issue
- 1
- Pages
- 128-161
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref