Immigrants and Social Networks in a Job-Scarce Environment: The Case of Germany

Abstract

Though information about jobs passed through personal networks has been central to the labor market integration of immigrants in the United States, its role in the economic absorption of immigrants in Germany, where jobs are scarcer and employers more likely to demand formal qualifications, is less clear. Through analysis of German Socio-Economic Panel data, we discovered that nearly half of all immigrant-origin job changers found their positions through networks and that the most vulnerable to unemployment – the young and the less educated – were especially likely to rely on them. Also, jobs found through networks were as likely to lead to improved working conditions as jobs acquired through more formal means. These findings have implications both for debates about assimilation and for social policy.