Unequal Ties: Immigrants’ Initial Social Capital and Labor Market Stratification

Abstract

Abstract Social capital (SC) plays a fundamental role in immigration by easing entry into a new environment. We advance a novel approach to assessing the role of SC for immigrants’ labor market incorporation. First, we isolate the impact of SC activation from the mere presence of potential help. Second, we disentangle the diverse components of migration-related SC by distinguishing between individual migration- (IM) and community migration-level (CM) connections in the country of destination. Third, we trace the roles of IM SC and CM SC across multiple labor market outcomes, ranging from the search to secure the first job to the quality of the first job to longer-term occupational mobility. Absent activation, IM SC has virtually no impact on any of the outcomes. Rather, migrants’ IM SC yield their fundamental impact when activated, contributing to a successful job search while steering them into first jobs that are of lower-quality relative to their pre-migration occupation. By contrast, CM SC facilitates the initial job search and filters immigrants into higher-quality first jobs. Moreover, immigrants who arrive when CM SC is at its most mature stage reap the clearest benefits in improving their occupational status. These findings underscore the importance of both early settlement IM SC and CM SC in the processes of immigrants’ labor market stratification.