A Longitudinal Analysis of Ethnic Networks and Pathways to
In and Out of the Ethnic Economy: A Longitudinal Analysis of Ethnic Networks and Pathways to Economic Success Across Immigrant Categories By Wendy D. Roth, Marc-David L. Seidel, Dennis Ma and Eiston Lo Main Findings: Examines longitudinal differences across immigrant categories on how the choice of ethnic or non-ethnic workplace influences a) the ethnic composition of social networks and b) the immigrant’s economic success Using Longitudinal Survey of Immigrants to Canada- data 6 months, 2 years, and 4 years after arrival Found support on both sides of the ethnic economy debate Economic immigrants benefit from non-ethnic workplaces Family immigrants do better in ethnic workplaces The initial sorting of immigrants into visa categories largely constrict their paths of incorporation Two sides of the debate: 1. Ethnic economy provides alternate route mobility for immigrants who may be penalized by language and cultural barriers 2. Immigrant employees experience disadvantages in ethnic workplaces relative to open economies Many immigrants rely on ethnic ties for scarce resources and information to facilitate their settlement (upon arrival) Yet, because of network homophily, social support may lead to less diverse social networks become excluded from economic and social mainstream, coined “segmented trajectory of adaptation” by Nee and Sanders Those who arrive with or develop high stocks of social capital and lower of human capital, are more likely to work in ethnic communities Those who arrive with higher levels of human capital are more likely to move into open economy
Distinct immigrant categories (economic, family reunification, and refugee) associated with different motivations, skills, and forms of capital Economic immigrants selected for ability to rely on human or financial capital as primary resource for integration Family reunification – ethnic social capital from support of relatives and established ethnic community Refugees do not arrive with any forms of capital – but often sponsored by the government of private groups- helps them form social ties outside their ethnic community “labor market suitability” refers to immigrants ability to fit with economy ethnic network portfolios – choice of workplace/ influences of ethnic composition of social networks offers 3 different contributions to research: 1. examines how different categories of immigrants transition between workplace types in initial years after settlement 2. identify causal relationships between work-place type + ethnicity of subsequent ties for the different categories (explores ethnic diversity in social network) 3. evaluate income gains of immigrants from these different categories Immigrant Incorporation and Ethnic Communities Segmented or dual labor approach- 2 or more labor markets develop – secondary labor market characterized by low-paying low-skill jobs Bonacich- “Ethnic antagonism” – refers to immigrants trapped in secondary labor markets Portes “ethnic enclave economy” – immigrants avoid the disadvantages of secondary labor by establishing an enclave economy in which many ethnic enterprises are concentrated in a distinct geographical location Ups: immigrants not constrained my cultural and language barriers and their foreign credentials are recognized also stronger support from ethnic community
Sanders and Nee- found that these immigrants receive lower returns to their human capital than immigrants in primary labor market Ethnic economy concept – middleman minorities in small businesses act as intermediaries between elites and workers These individuals have high internal solidarity- more resistant to assimilation Most theories emphasize shared ethnicity as basis for upwards mobility Conclusions Though family immigrants less likely to transition to open economy initially after arrival, however more likely transition into non-ethnic workplaces 4 years after arrival than other types of immigrants Family immigrants who transition to non-ethnic economy achieve less income than other immigrants -> better off within ethnic economy Initially, family immigrants gain as much in ethnic economy as economic immigrants do outside, BUT over time, economic immigrants gain more (4 years after arrival) Economic immigrants transition more frequently from ethnic economy into non-ethnic economy Entrepreneurship for refugees provides beneficial alternative ethnic economy – avoid barriers faced in mainstream employment – a way for their for their skills and credentials to be recognized Likely due to the financial institutional and organizational support form private and government sponsors Immigrant entrepreneurship not found to be beneficial for family immigrants Economic immigrants not found benefit from entrepreneurship either Though investment in ethnic ties were found to lead to more ethnic ties, no support found in investment in non-ethnic ties leading to employment in non-ethnic workplace
Investment in non-ethnic ties, however, tended to provide sources of new information, opportunities, and experiences that pay off regardless of occupation reached
Distinct immigrant categories (economic, family reunification, and refugee) associated with different motivations, skills, and forms of capital Economic immigrants selected for ability to rely on human or financial capital as primary resource for integration Family reunification – ethnic social capital from support of relatives and established ethnic community Refugees do not arrive with any forms of capital – but often sponsored by the government of private groups- helps them form social ties outside their ethnic community “labor market suitability” refers to immigrants ability to fit with economy ethnic network portfolios – choice of workplace/ influences of ethnic composition of social networks offers 3 different contributions to research: 1. examines how different categories of immigrants transition between workplace types in initial years after settlement 2. identify causal relationships between work-place type + ethnicity of subsequent ties for the different categories (explores ethnic diversity in social network) 3. evaluate income gains of immigrants from these different categories Immigrant Incorporation and Ethnic Communities Segmented or dual labor approach- 2 or more labor markets develop – secondary labor market characterized by low-paying low-skill jobs Bonacich- “Ethnic antagonism” – refers to immigrants trapped in secondary labor markets Portes “ethnic enclave economy” – immigrants avoid the disadvantages of secondary labor by establishing an enclave economy in which many ethnic enterprises are concentrated in a distinct geographical location Ups: immigrants not constrained my cultural and language barriers and their foreign credentials are recognized also stronger support from ethnic community
Sanders and Nee- found that these immigrants receive lower returns to their human capital than immigrants in primary labor market Ethnic economy concept – middleman minorities in small businesses act as intermediaries between elites and workers These individuals have high internal solidarity- more resistant to assimilation Most theories emphasize shared ethnicity as basis for upwards mobility Conclusions Though family immigrants less likely to transition to open economy initially after arrival, however more likely transition into non-ethnic workplaces 4 years after arrival than other types of immigrants Family immigrants who transition to non-ethnic economy achieve less income than other immigrants -> better off within ethnic economy Initially, family immigrants gain as much in ethnic economy as economic immigrants do outside, BUT over time, economic immigrants gain more (4 years after arrival) Economic immigrants transition more frequently from ethnic economy into non-ethnic economy Entrepreneurship for refugees provides beneficial alternative ethnic economy – avoid barriers faced in mainstream employment – a way for their for their skills and credentials to be recognized Likely due to the financial institutional and organizational support form private and government sponsors Immigrant entrepreneurship not found to be beneficial for family immigrants Economic immigrants not found benefit from entrepreneurship either Though investment in ethnic ties were found to lead to more ethnic ties, no support found in investment in non-ethnic ties leading to employment in non-ethnic workplace
Investment in non-ethnic ties, however, tended to provide sources of new information, opportunities, and experiences that pay off regardless of occupation reached
