The effect of co-ethnic social capital on immigrants' labor market integration: a natural experiment

Comparative Migration Studies

Table 4 Hourly wages in the first job in Germany

	Model 3.1	Model 3.2	Model 3.3	Model 3.4	Model 3.5	Model 3.6
Co-ethnic community size	0.01	0.03	− 0.04	0.02	− 0.06	− 0.04
Co-ethnic community size	(0.02)	(0.06)	(0.06)	(0.08)	(0.07)	(0.10)
Use of social contacts for job search			0.15	0.13	0.27	0.26
Use of social contacts for job search			(0.12)	(0.12)	(0.14)	(0.14)
x Co-ethnic community size				− 0.07		− 0.02
x Co-ethnic community size				(0.08)		(0.10)
N of individuals	219	219	219	219	219	219
Model fit
Log likelihood	− 168	− 101	− 99	− 99	− 71	− 71
Degrees of freedom	1	53	54	55	78	79
Adjusted R²	− 0.00	0.11	0.12	0.12	0.17	0.17
Model specification
Origin (group) FE	No	Yes	Yes	Yes	Yes	Yes
District FE	No	Yes	Yes	Yes	Yes	Yes
Confounders	No	No	No	No	Yes	Yes

Data source: IAB-SOEP-Migration Sample 2015, own calculations
The dependent variable is the log of real wages in the first job in Germany. The estimated model is the OLS regression model. The “co-ethnic community size” variable is standardized: the relevant coefficient corresponds to the effect of an increase by one standard deviation. Robust standard errors are in parentheses. FE = fixed effects. For the list of confounders included in the models, see the section Independent variables and confounders. For the full models, see Additional file 1: Appendix F
^*p < 0.05; **p < 0.01; ***p < 0.001 (two-tailed test)