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Social capital and wage disadvantages among immigrant workers

Author

Listed:
  • Alireza Behtoui

    (REMESO, Linköping University, Sweden, CEIFO, Stockholm University, Sweden, alireza.behtoui@liu.se)

  • Anders Neergaard

    (REMESO, Linköping University, Sweden, anders.neergaard@liu.se)

Abstract

This study investigates the characteristics that affect access to social capital for employees in a single industrial firm in Sweden, and the impact of their social capital on their monthly salaries. The results demonstrate that being a member of a stigmatised immigrant group is associated with a substantial social capital deficit. This deficit arises because immigrant workers are embedded in social networks that constrain their ability to acquire valuable social resources or are excluded from social networks with valuable resources. Another finding is that the average salary earned by members of stigmatised immigrant groups is lower than that earned by native-born workers. The observed wage gap cannot be explained by ‘human capital’ variables. However, when social capital variables were taken into account, wage gaps noticeably shrank, which indicates that part of the wage disadvantage experienced by immigrants is likely to represent the impact of unequal access to social capital.

Suggested Citation

  • Alireza Behtoui & Anders Neergaard, 2010. "Social capital and wage disadvantages among immigrant workers," Work, Employment & Society, British Sociological Association, vol. 24(4), pages 761-779, December.
    • Handle: RePEc:sae:woemps:v:24:y:2010:i:4:p:761-779
    DOI: 10.1177/0950017010380640
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    References listed on IDEAS

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    1. Schierup, Carl-Ulrik & Hansen, Peo & Castles, Stephen, 2006. "Migration, Citizenship, and the European Welfare State: A European Dilemma," OUP Catalogue, Oxford University Press, number 9780199284023.
    2. Mahmood Arai & Peter Skogman Thoursie, 2009. "Renouncing Personal Names: An Empirical Examination of Surname Change and Earnings," Journal of Labor Economics, University of Chicago Press, vol. 27(1), pages 127-147, January.
    3. Carl le Grand & Ryszard Szulkin, 2002. "Permanent Disadvantage or Gradual Integration: Explaining the Immigrant–Native Earnings Gap in Sweden," LABOUR, CEIS, vol. 16(1), pages 37-64, March.
    4. Gill Kirton, 2009. "Career plans and aspirations of recent black and minority ethnic business graduates," Work, Employment & Society, British Sociological Association, vol. 23(1), pages 12-29, March.
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    Cited by:

    1. Ralf Werner Koßmann, 2016. "Effectiveness of Social Capital in the Job Search Process," SOEPpapers on Multidisciplinary Panel Data Research 823, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Eleonora Mussino & Ann-Zofie Duvander, 2016. "Use It or Save It? Migration Background and Parental Leave Uptake in Sweden," European Journal of Population, Springer;European Association for Population Studies, vol. 32(2), pages 189-210, May.

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