Advertisement

Do Migrants Get Good Jobs in Australia? The Role of Ethnic Networks in Job Search

  • Stéphane Mahuteau
  • P. N. Raja Junankar

Abstract

The aim of this paper is to study how new migrants to Australia find ‘good jobs’. We use all the waves of the two cohorts of the Longitudinal Survey of Immigrants to Australia (LSIA) to analyse whether a new migrant obtains a good job conditional on finding a job. The distinctive nature of this paper is to study the role of ethnic networks in job search and the quality of jobs that migrants find in the first few years of settlement. We define the concept of a ‘good job’ in terms of objective and subjective criteria. Our results suggest that there is an initial downward movement along the occupational ladder due to imperfect transferability of human capital from the source country to the recipient country, followed by an improvement.1 As a result of a tightening in access to social security benefits for the second cohort of the LSIA, we study whether this increases the probability that new migrants accept a ‘bad job’ quickly and then move onto better jobs over time. Our results provide some support to this view. However, accounting for their higher employability, new migrants seem to fare better up to 1.5 years after settlement.

Keywords

Marginal Effect Visa Category Occupational Mobility Social Security Benefit Objective Definition 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Barber, A.E. (1998), Recruiting Employees: Individual and Organisational Perspectives. Sage Publications, London.Google Scholar
  2. Bauer, T. and Zimmermann, K.F. (1999), ‘Occupational Mobility of Ethnic Migrants’, IZA Discussion Paper No. 58. Bonn, Germany.Google Scholar
  3. Chiswick, B.R. (1979), ‘The Economics Progress of Immigrants. Some Apparently Universal Patterns’, in Fellner, W. (ed.), Contemporary Economic Problems 1979. American Enterprise Institute for Public Policy Research, Washington, DC; 357–99.Google Scholar
  4. Chiswick, B.R., Lee, Y.L. and Miller, P.W. (2002a), ‘Longitudinal Analysis of Immigrant Occupational Mobility: A Test of the Immigrant Assimilation Hypothesis’, IZA Discussion Paper No. 452. Bonn, Germany.Google Scholar
  5. Chiswick, B.R., Lee, Y.L. and Miller, P.W. (2002b), ‘The Determinants of the Geographic Concentration among Immigrants: Application to Australia’, IZA Discussion Paper No. 462. Bonn, Germany.Google Scholar
  6. Chiswick, B.R. and Miller, P.W. (2006), ‘Immigration to Australia during the 1990s: Institutional and Labour Market Influences’, in Cobb-Clark, D.A. and Khoo, S. (eds), Public Policy and Immigrant Settlement. Edward Elgar Publishing Ltd, Cheltenham; 121–48.Google Scholar
  7. Cobb-Clark, D.A. (2000), ‘Do Selection Criteria Make a Difference? Visa Category and the Labour Market Status of Immigrants to Australia’, Economic Record, 76, 15–31.CrossRefGoogle Scholar
  8. Cobb-Clark, D.A. (2003), ‘Public Policy and the Labor Market Adjustment of New Immigrants to Australia’, Journal of Population Economics, 16, 655–81.CrossRefGoogle Scholar
  9. Duleep, H.O. and Regets, M.C. (1996), ‘Earnings Convergence: Does It Matter where Immigrants Come from or why?’, The Canadian Journal of Economics/Revue Canadienne D’economie, 29 (Special Issue Part 1), S130–4.CrossRefGoogle Scholar
  10. Elliott, J. (1999), ‘Social Isolation and Labor Market Isolation: Network and Neighborhood Effects on Less-Educated Urban Workers’, Sociological Quarterly, 40, 199–216.CrossRefGoogle Scholar
  11. Ioannides, Y.M. and Loury, L.D. (2004), ‘Job Information Networks, Neighborhood Effects and Inequality’, Journal of Economic Literature, 42, 1056–93.CrossRefGoogle Scholar
  12. Junankar, P.N. and Mahuteau, S. (2005), ‘Do Migrants Get Good Jobs: New Migrant Settlement in Australia’, Economic Record, 81, S34–S46.CrossRefGoogle Scholar
  13. Loury, L.D. (2006), ‘Some Contacts Are More Equal Than Others: Earnings and Job Information Networks’, Journal of Labor Economics, 24, 299–318.CrossRefGoogle Scholar
  14. Marsden, P.V. and Gorman, E.H. (2001), ‘Social Networks, Job Changes and Recruitment’, in Berg, I.E. and Kalleberg, A.L. (eds), Sourcebook of Labor Markets: Evolving Structures and Processes. Kluwer Academic Plenum Publishers, New York.Google Scholar
  15. McMillan, J. and Jones, F.L. (2000), ‘The ANU3–2 scale: a revised occupational status scale for Australia’, Journal of Sociology, 36, 64–80.CrossRefGoogle Scholar
  16. Montgomery, J. (1991), ‘Social Networks and Labor Market Outcomes: Towards an Economic Analysis’, American Economic Review, 81, 1408–18.Google Scholar
  17. Munshi, K. (2003), ‘Networks in the Modern Economy: Mexican Migrants in the US Labor Market’, Quarterly Journal of Economics, 118, 549–99.CrossRefGoogle Scholar
  18. Ottaviano, G.I.P. and Peri, G. (2006), ‘The Economic Value of Cultural Diversity: Evidence from US Cities’, Journal of Economic Geography, 6, 9–44.CrossRefGoogle Scholar
  19. Richardson, S., Miller-Lewis, L., Ngo, P. and Ilsley, D. (2002), ‘The Settlement Experiences of New Migrants: a Comparison of Wave 1 of LSIA 1 and LSIA 2’, Report Prepared for the Department of Immigration and Multicultural and Indigenous Affairs, Commonwealth of Australia, Canberra.Google Scholar
  20. Richardson, S., Robertson, F. and Ilsley, D. (2001), The Labour Force Experience of New Migrants. Australian Government Publishing Service, Canberra.Google Scholar
  21. Simon, C.J. and Warner, J.T. (1992), ‘Matchmaker, Matchmaker: The Effect of Old Boy Networks on Job Match Quality, Earnings and Tenure’, Journal of Labor Economics, 10, 306–30.CrossRefGoogle Scholar
  22. Stark, O. and Wang, Y.Q. (2002), ‘Migration Dynamics’, Economic Letters, 76, 159–64.CrossRefGoogle Scholar
  23. Thapa, P.J. and Gørgens, T. (2006), ‘Finding Employment after Migration: How Long does it Take?’, In: Cobb-Clark, D.A. and Khoo, S.E. (eds), Public Policy and Immigrant Settlement. Edward Elgar Publishing Ltd, Cheltenham; 219–29.Google Scholar
  24. Yamauchi, F. and Tanabe, S. (2006), ‘Nonmarket Networks among Migrants: Evidence from Metropolitan Bangkok, Thailand’, Journal of Population Economics, 21, 649–64.CrossRefGoogle Scholar

Copyright information

© John Wiley & Sons, Inc. 2008

Authors and Affiliations

  • Stéphane Mahuteau
  • P. N. Raja Junankar

There are no affiliations available

Personalised recommendations