The role of social capital in immigrants’ and refugees’ labour market integration: evidence from Germany

Handbook on Inequality and Social Capital
,
pp. 288-304
,
Cheltenham
,
Edward Elgar
,
2024,

Steve McDonald, Rochelle Côté, Jing Shen,
Kosyakova, Yuliya, Irena Kogan
ISBN: 978 1 80220 236 6 (print), 978 1 80220 237 3 (online)
DOI: 
10.4337/9781802202373.00028
Abstract

This study investigates the impact of job search behaviour on immigrants’ employability and job status, considering the diverse nature of the immigrant population. The findings reveal the heterogeneity among refugees, economic immigrants and family immigrants concerning social and human capital, demographic characteristics, and job search strategies. While most economic and family immigrants possess premigration contacts in Germany and use them for the job search, refugees largely lack such connections and thus opportunities to use them for the job search. Yet, leveraging social contacts proves beneficial particularly for refugees and family facilitating gainful employment but often leading to lower-status jobs. Among economic immigrants, relying on social contacts in the job search results in lower occupational status, while such contacts show no discernible impact on employment propensity. The findings underscore the multifarious nature of social capital in immigrants’ labour market integration, emphasizing trade-offs and heterogeneities in the process.

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