CRIEFF Discussion Paper Number 0811
Social Networks in Determining Migration and Labor Market Outcomes:
Evidence from the German Reunification
Helmut Rainer, (University of St.Andrews), Thomas Siedler (DIW Berlin and University of Essex),
Abstract
This paper empirically
examines social network explanations for migration decisions in the context of
the German reunification. Using longitudinal data from the German Socio-Economic
Panel, we first show that the presence of family and friends in West Germany is
an important predictor for the migration hazard rate of East Germans. We then
explore whether pre-migration networks have a discernible impact on the
economic and social assimilation of East German immigrants in West Germany. We
find that East German immigrants are more likely to be employed, and to hold
higher-paying jobs, when socially connected to the West prior to emigrating.
East Germans immigrants with pre-migration networks also appear to be more
integrated into their Western host communities than movers without preexisting
social ties..
JEL codes: C23, J61.
Keywords:
Migration; Social networks; Labor market outcomes; Community involvement.
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