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Social networks and the labour market mismatch

Kalfa, Eleni, Piracha, Matloob (2018) Social networks and the labour market mismatch. Journal of Population Economics, 31 (3). pp. 877-914. ISSN 0933-1433. E-ISSN 1432-1475. (doi:10.1007/s00148-017-0677-5) (KAR id:64220)


This paper assesses the extent to which social contacts and ethnic concentration affect the education-occupation mismatch of natives and immigrants. Using Australian panel data and employing a dynamic random effects probit model, we show that social capital exacerbates the incidence of over-education, particularly for females. Furthermore, for the foreign-born, ethnic concentration significantly increases the incidence of over-education. Using an alternative index, we also show that social participation, friends and support and ethnic concentration are the main contributors in generating a mismatch, while reciprocity and trust does not seem to have any effect on over-education for both, immigrants and natives. Finally, we show that social networks are more beneficial for the relatively better educated.

Item Type: Article
DOI/Identification number: 10.1007/s00148-017-0677-5
Uncontrolled keywords: social capital, ethnic concentration, over-education
Subjects: H Social Sciences
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: Matloob Piracha
Date Deposited: 02 Nov 2017 11:37 UTC
Last Modified: 04 Mar 2024 19:25 UTC
Resource URI: (The current URI for this page, for reference purposes)

University of Kent Author Information

Kalfa, Eleni.

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Piracha, Matloob.

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