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Immigrant Networks and Their Implications for Occupational Choice and Wages

Krishna G. Patel1; Francis Vella2

1 Federal Deposit Insurance Corporation · 2 Georgetown University

The Review of Economics and Statistics 2013 open access

Occupational shares of various ethnic groups have grew tremendously in regional U.S. labor markets from 1980 to 2000. Using U.S. Census data, we examine the extent to which this growth is attributed to network effects by studying the relationship between the occupational choice of recently arrived immigrants with those of established immigrants from the same country, We find strong evidence of network effects. First, new arrivals are choosing the same occupations as their compatriots, a decision that is operating at the regional level. Second, individuals who choose the most common occupation of their compatriots enjoy a large and positive earnings effect.

DOI
10.1162/rest_a_00327
Volume
95 (4)
Pages
1249-1277
Language
en
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