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Title: Social Networks and the Dynamics of Labor Market Outcomes: Evidence from Refugees Resettled in the U.S.

Citation Type: Miscellaneous

Publication Year: 2010

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Abstract: This paper examines the dynamic implications of social networks for the labor market out-comes of refugees resettled in the U.S. A theoretical model of job information transmission shows that the relationship between social network size and labor market outcomes is heterogeneous and depends on the vintage of network members: an increase in network size can negativelyimpact some cohorts in a network while benefi ting 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.

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Authors: Beaman, Lori A.

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Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure, Migration and Immigration

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