Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/265930 
Year of Publication: 
2022
Series/Report no.: 
CESifo Working Paper No. 9895
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Immigrants are more likely to have conationals as colleagues, however the consequences of such workplace segregation is an open question. I study the effect of the conational share in an immigrant's first job on subsequent labour market outcomes using register data from Germany. I instrument for the conational share using hiring trends in the local labour market and find that a ten-percentage-point increase in the initial conational share lowers employment rates by 3.1 percentage points six or more years after the start of the first job, an effect not observed for non-conational immigrants, with no effect on wages conditional on employment. The employment effect appears to be due to the effect of differences in the composition of social networks induced by differences in the initial workplace on subsequent job search behaviour, although differential Germany-specific human capital acquisition cannot be entirely ruled out.
Subjects: 
employment
segregation
coworker networks
immigrant earnings dynamics
JEL: 
J61
J64
J31
Document Type: 
Working Paper
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