Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/125010 
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers No. 9493
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
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.
Subjects: 
social capital
ethnic concentration
over-education
JEL: 
F22
J61
Z13
Document Type: 
Working Paper

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