THE IMPACT OF SOCIAL CAPITAL ON THE EARNINGS OF PUERTO RICAN MIGRANTS

There is a paucity of studies examining the relationship between Puerto Ricans' social capital and their earnings. I utilized data from the Latin American Migration Project (collected in 1998 and 1999) to test five hypotheses derived from social capital theory to predict the hourly earnings of Puerto Rican migrants. My study illustrates that Puerto Rican migrants' social capital is positively related with their earnings. Interestingly, the social capital effects only pertain to Puerto Rican females. Additionally, Puerto Rican migrants do not benefit from ethnic solidarity in terms of increased wages. My analyses point toward social capital's ability to provide important labor market information to Puerto Rican females, which they appear to use to acquire jobs paying higher wages.
Social capital theory has been applied to many different phenomenon including banking, education, immigration, labor markets, and nation building ( Massey et al. 1987 ; Coleman 1988 ; Uzzi 1999 ; Fernandez, Castilla, and Moore 2000 ; Putnam 2000 ). Within the labor market, social capital has been found to be related with earnings, employment, formal employment, and job tenure ( Mier and Giloth 1986 ; Donato, Durand, and Massey 1992 ; Aguilera 1999; 2003 ; Philips and Massey 1999 ; Aguilera and Massey 2003 ). Within the immigration field, social capital has been linked with the migration process, labor market outcomes, and attainment of citizenship ( Massey et al. 1987 ; Baker 2000 ; Aguilera and Massey 2003 ; Fussell 2004 ). Unfortunately, Puerto Ricans have been unstudied within this massive literature about social capital. Additionally, gender differences in returns to social capital are only just beginning to be recognized and there is little agreement as to whether males or females benefit most from social capital. I studied the relationship between social capital and labor market outcomes of Puerto Rican migrants, paying special attention to differences in gender.     

Laboring Underground: The Employment Patterns of Hispanic Immigrant Men in Durham, NC

The dramatic increase in Hispanic immigration to the United States in recent decades has been coterminous with fundamental shifts in the labor market towards heightened flexibility, instability, and informality. As a result, the low-wage labor market is increasingly occupied by Hispanic immigrants, many of whom are undocumented. While numerous studies examine the implications for natives' employment prospects, our understanding of low-wage immigrants themselves remains underdeveloped. Drawing on original data collected in Durham, North Carolina, this article provides a more holistic account of immigrant Hispanic's labor market experiences, examining not only wages but also employment instability and benefit coverage. The analysis evaluates the role of human capital and immigration characteristics, including legal status, in shaping compensation outcomes, as well as the influence of other employment characteristics. Findings highlight the salience of nonstandard work arrangements such as subcontracting and informal employment to the labor market experiences of immigrant Hispanic men, and describe the constellation of risk factors that powerfully bound immigrant employment outcomes. Keywords: Hispanic; immigration; wages; low-wage labor market; employment relations.     

The Occupational Assimilation of Hispanic Immigrants in the U.S.: Evidence from Panel Data1

This study focuses on the occupational component of the labor market adjustment of Hispanic immigrants. The author asks whether Hispanic immigrants assimilate with natives and what factors influence occupational attainment. The findings suggest that years since migration narrow the socioeconomic gap between Hispanic immigrants, their U.S.‐born Hispanic counterparts, and non‐Hispanic whites. The level of human capital affects the rate of occupational mobility and determines whether convergence occurs in the groups’ socioeconomic occupational status. The occupational status of Hispanic immigrants with low human capital remains fairly stable and does not converge with that of non‐Hispanic whites. However, those with high human capital experience upward occupational mobility. In part, their occupational assimilation is driven by the acquisition of human capital among younger Hispanic immigrants.     

Mobile Livelihoods: The Sociocultural Practices of Circular Migrants between Puerto Rico and the United States1

This article focuses on the bilateral flow of people between Puerto Rico and the United States ‐ what has come to be known as circular, commuter, or revolving‐door migration. It documents the migrants' livelihood practices based on a recent field study of population flows between Puerto Rico and the mainland. Specifically, the basic characteristics of multiple movers, one‐time movers and nonmovers residing in Puerto Rico are compared. More broadly, the article assesses the implications of circular migration for Puerto Rican communities on and off the island. The author's basic argument is that the constant displacement of people ‐ both to and from the island ‐ blurs the territorial, linguistic, and juridical boundaries of the Puerto Rican nation. As people expand their means of subsistence across space, they develop multiple attachments to various localities. In the Puerto Rican situation, such mobile livelihoods are easier to establish than in other places because of the free movement of labor and capital between the island and the mainland. The author hypothesizes that circulation does not entail major losses in human capital for most Puerto Ricans, but rather often constitutes an occupational, educational, and linguistic asset.     

How to Succeed in a Transnational Labor Market: Job Search and Wages among Hungarian,Slovak, and Czech Commuters in Austria

This paper deals with job search strategies and wages among cross‐border commuters residing in the Central European Region (CENTROPE). Our main aim is to investigate the role of social networks as constitutive for job searching and for successful labor market integration. We build upon a theoretical framework developed by Aguilera and Massey, reflecting on the nexus of social networks, job search methods, and related labor market outcomes. Methodologically, we use a new quantitative survey on the employment careers of cross‐border commuters residing in the regions of the Czech Republic, Slovakia, and Hungary bordering on Austria, conducted in the winter/spring of 2012/2013 (N = 2,573). Our results corroborate the hypothesis that human and social capital resources as well as labor market characteristics serve as key factors for job search and labor market integration among cross‐border commuters in the CENTROPE transnational labor market.     

CAPITAL MARKET IMPERFECTIONS, LABOR MARKET DISEQUILIBRIUM AND MIGRATION: A THEORETICAL AND EMPIRICAL ANALYSIS

Traditional analyses of the determinants of migration in less developed countries have focused on labor market conditions. This paper adapts a simple model to show that capital market conditions may be an important factor in individuals' migration decisions. Data from Ecuador are used to test this model, and the empirical results confirm the role of capital market imperfections—chiefly caused by financial repression—in shaping migration flows. Traditional labor market factors still matter, but the new finding may provide policy makers with new and lower-cost tools with which to affect migration outcomes.     

A GENDERED CONTEXT OF OPPORTUNITY:

Current research has failed to examine how women's opportunities in the labor market, in combination with their human capital attributes, differentially affect the likelihood that they will live in poverty. This study overcomes this limitation by placing specific emphasis on the role that labor market opportunities play in contributing to, or reducing, women's and men's risk of poverty. In addition, differences in poverty risk by urban and rural labor market areas are examined, as labor market dynamics vary substantially by rurality. Using the PUMS-L and STF3C for 1990, logistic regression techniques are employed to address these issues. Our results indicate that women across all labor market contexts have a significantly higher risk of poverty than men, and incorporation of labor market characteristics fails to explain this higher risk. However, the economic opportunities available in the labor market play an important role in determining how an individual's credentials, family background, and work experience translate into poverty risk. While individual attributes play a smaller role in explaining rural women's likelihood of living in poverty, women in both urban and rural labor markets face more limited economic opportunities than their male counterparts. This suggests that a "gendered" context of opportunity remains a barrier for women's movement out of poverty in both urban and rural labor markets.     

The Impact of Legal Status on Immigrants’ Earnings and Human Capital: Evidence from the IRCA 1986

The Immigration Reform and Control Act (IRCA), the largest amnesty in U.S. history, took effect in 1986 and legalized all immigrants who arrived before 1982. The IRCA creates a discontinuity, according to the year of entry, in the probability of having legal status. Therefore, I use the regression discontinuity approach to study the impact of legality on immigrants’ labor market outcomes and human capital. Using Californian Latino immigrants from Census 1990, I find that the 1975–81 arrivals, on average, outperform the 1982–86 arrivals in male wages, female employment probability, and male English-speaking ability. These findings are not due to a general trend in U.S. labor market conditions because the same analysis, using refugees, Puerto Rican migrants and U.S.-born Latinos—three comparison groups without legality issues—indicates no difference in outcomes between the 1975–81 and 1982–86 cohorts. However, the advantage of Latino immigrants of the earlier cohort over the later cohort diminishes in Census 2000.     

Military Service as a Factor in the Economic Progress of African American Men: A Post-Draft Era Analysis

The earnings of African American males have increased in real terms over the past 50 years, but there still are marked differences in their progress relative to either whites or Asian Americans. This gap has been linked to differences in levels of education and other human capital issues. It has been hypothesized the military service serves as a buffer to adverse labor market characteristics. This paper examines the role of military service on the post-service wages of African American males in the post-draft era.     

How to Get a Longer Job? Roles of Human and Social Capital in the Japanese Labor Market

This article investigates the roles of human and social capital played in the Japanese labor market. Our research question is whether they interact to accelerate or decelerate each other to provide first jobs of a long duration. Based on the literature, we focus on the bonding functions of friends and relatives. Using the 2005 Social Stratification and Social Mobility Survey Data, we measure human capital by educational attainment (college education) and social capital by job search methods (using friends or relatives). The dependent variable is the hazard rate of turnover from the first job. We find that social capital especially benefits those with low human capital (high school graduates). When friends or relatives introduce workers to jobs, high school graduates tended to stay longer in their first jobs and had a lower turnover than college graduates did. This means that social capital decelerated effects of human capital. Therefore, in the Japanese labor market, social capital plays a complementary role in mitigating educational disadvantage.     

The migratory impact of minimum wage legislation: Puerto Rico, 1970-1987

"This study examines the impact of minimum wage setting on labor migration. A multiple time series framework is applied to monthly data for Puerto Rico from 1970-1987. The results show that net emigration from Puerto Rico to the United States fell in response to significant changes in the manner in which minimum wage policy was conducted, particularly after 1974. The extent of commuter type labor migration between Puerto Rico and the United States is influenced by minimum wage policy, with potentially important consequences for human capital investment and long-term standards of living."     

ETHNIC LABOR MARKETS, GENDER, AND SOCIOECONOMIC INEQUALITY:

The research examines the way in which the economic structure of the Arab labor market in Israel, coupled with gender-linked occupational segregation affects gender differences in socioeconomic attainment. The analysis is based on the 1983 Israeli Census of Population. The concept of ethnic labor market is discussed in a comparative perspective, shifting the focus to public sector employment which is central to the Arab labor market in Israel. The analyses led to a twofold conclusion: first, the Arab labor market in Israel operates as a protected labor market, and second, it interacts with gender in the determination of socioeconomic outcomes. In the absence of competition minority workers are able to achieve in the ethnic labor market high status occupational positions that are typically denied them in the wider society. The occupational advantages are especially pronounced among Arab women. For men, employment in the ethnic labor market increases occupational status but provides lower earnings than employment outside.     

Between Two Worlds: Source‐Country Gender Roles and Gender Differences in Educational Attainment among Immigrant Children

Recent scholarship has focused on the relationship between source‐country characteristics such as female labor force participation, fertility, level of economic development, gender role attitudes, and immigrants’ labor market assimilation. These studies refer to national‐level factors when accounting for the vast differences in home‐country groups in labor market outcomes. This study asks to what extent these source‐country characteristics affect immigrant children's educational outcomes. Using data from the 2006 Canadian Census and World Values Survey, this article examines the extent to which the gender gap in educational attainment among immigrant children is associated with source‐country factors. Female child immigrants who come from countries with high female labor force participation and high levels of GDP have an advantage over their male counterparts in university education. Source‐country gender role ideology played a role in university completion rates for immigrant parents, but not for child immigrants.     

LEARNING BUT NOT EARNING? THE IMPACT OF JOB CORPS TRAINING ON HISPANIC YOUTH

Why did Hispanics who participated in Job Corps (JC) training not experience earnings gains like whites and blacks, despite achieving similar human capital gains? We find that the differential labor market outcomes of each group are related to the different levels of local labor market unemployment rates (LUR) they face. Furthermore, the groups exhibit differential impacts on their earnings from the LUR they face, which also vary by randomization status. We find that (a) blacks and Hispanics face higher LUR that mitigate their potential gains from JC and (b) JC “shields” whites from adverse LUR, but not blacks and Hispanics. (JEL J24, J13, J15)     

Generation Status,Social Capital,and the Routes Out of High School

This study investigates immigrant-native differences in the activities of adolescents 2 years after their sophomore year of high school. We employ longitudinal data for the modeling of duration, nativity and generation differences in education and employment activities during late adolescence. We ask if the same human and social capital characteristics employed as explanations for nativity differences in achievement are predictive of high school participation versus other activities such as labor force participation within a cohort of adolescents. Despite their lower levels of human capital and lower previous academic performance, recent immigrants who arrive in the United States as adolescents are more likely than those who arrive earlier or those born in the United States to persevere in high school. Access to familial social capital and attitudinal measures help explain some of this effect. As for those who do leave school early, socioeconomic status and language background play a role in the activities respondents pursue. While recent immigrants are more likely to persevere in high school, once they leave they are no more likely to pursue additional education than their U.S. born counterparts.     

Migration in a small semiperiphery: the movement of Puerto Ricans and Dominicans

"This article argues that the semiperipheral development of Puerto Rico since around 1975 has led to the creation of a relative labor surplus in the formal sectors of the economy while at the same time increasing the demand for cheap labor in the informal service sector. Thus, Puerto Ricans leave their country in search of good jobs in the United States while Dominicans migrate to Puerto Rico and find work in the informal sector. The return migration of Puerto Ricans has also been significant, but is due to their strong national culture, rather than economic reasons. The article concludes that migration to and from Puerto Rico is of a semiperipheral type because it combines characteristics of migration previously described as 'migration from the periphery to the center' and 'migration within the periphery.' A precise definition of the semiperipheral characteristics of Puerto Rico is given."     

FEMININE CAPITAL: The Forms of Capital in the Female Labor Market in Japan

There are many studies of the effect of human capital on individual labor market out-comes and on the contribution of educational institutions to an individual's human, social, and cultural capital. Logistic regression analyses, using data on women's job placement in Japan, showed that a feminine characteristics and support from school were important for being hired by large companies for clerical jobs. This paper argues that there are forms of capital that are specific to women's employment outcome in the Japanese labor market. This lays the basis for gender discrimination and a "glass ceiling" on women's advancement in corporate Japan.     

Success on European Labor Markets: A Cross‐national Comparison of Attainment between Immigrant and Majority Populations1

Typical labor market outcomes vary considerably between majority and migrant populations. Drawing on scholarship from across the social sciences, we assess competing micro‐ and macro‐level explanations of differential occupational attainment among immigrant groups across 28 countries. The analyses of occupational attainment are run separately for first‐ and second‐generation migrants as well as children of mixed marriage and take into account their wider social and cultural background. Results from four rounds of the European Social Survey show that people with a migration background do not necessarily achieve a lower labor market success than the majority. However, human capital, social mobility, and cultural background explain these outcomes to different degrees, suggesting tailored pathways to labor market success for each group of migrants. We also find that occupational attainment varies considerably across countries, although this is hardly attributable to immigration policies. These and other findings are discussed in the light of previous studies on immigrant incorporation.     

Gender differences in the reemployment status of displaced workers human capital as signals that mitigate effects of bias

Data from the Current Population Survey's Displaced Workers Supplement for year 2000 indicate that after job loss, women become reemployed less frequently than do men. To explain this difference, we test sets of hypotheses derived from Human Capital and Gender Queuing theories. The results support the theory that in their hiring of displaced workers, employers tend to place men in a higher labor queue than women. Net of human capital factors, women are significantly less likely than men to be reemployed following the loss of a job. However, results also show that for women only, certain human capital characteristics substantially improve their reemployment chances. Unmarried women displaced from full-time and white-collar high-level occupations were significantly more likely to become reemployed than were women without these characteristics. The results suggest that queuing processes interact with human capital characteristics in a gender specific manner. Because employers lack perfect information about job applicants, they rely on certain human capital characteristics that signal the extent to which women in the labor market depart from prevailing negative stereotypes about women workers. To employers, unmarried women displaced from full-time managerial and professional jobs may appear more productive and committed to work than do women lacking these types of human capital. Thus, the possession of certain types of human capital among women can mitigate the effects of gender bias in the hiring of displaced labor.     

Economic achievement of immigrants in Japan: Examining the role of country-of-origin and host-country-specific human capital in an inflexible labor market

The economic integration of immigrants is a salient social issue in Japan. Although the US immigration literature has stressed the importance of host-country-specific human capital over country-of-origin human capital for immigrants, previous studies in Japan have shown mixed results about the effects of these two types of human capital on the economic integration of immigrants. The mixed results might be because previous studies focused on only specific immigrant groups (with regard to nationalities, cities, and visa status), human capital variables, and dimensions of economic achievements in the Japanese labor market. The segmented nature of the Japanese labor market structure and immigration policies create different pathways to “economic achievements” of immigrants depending on the dimension of “economic achievements” studied. By conducting a nationally representative social survey of Japanese immigrants, we examined the association between the two types of human capital (i.e., country-of-origin and host-country-specific) and the three indicators of labor market success: employment status and firm size, occupational status, and income. Our results indicate that host-country-specific human capital in the form of higher education and language proficiency is important for all three indicators of economic achievement in Japan, while country-of-origin human capital in the form of higher education and vocational skills is transferable to some extent. Our results suggest that the significance of human capital in immigrants' economic success is determined not only by the structure of the labor market but also by immigration policies.