Job Search Network, Human Capital Investment, and Immigrant Earnings: Findings from East Asia

This study investigates how and the extent to which informal job search through co-ethnic ties versus interethnic ties differentially relates to earnings inequality among female immigrant workers in South Korea. Nationally representative data are drawn from two cross-sectional waves of survey fielded in 2018 and 2021. Results show that obtaining a job through social contact leads to a significant wage penalty. Moreover, the magnitude of the education-income link becomes diminished for those who rely on informal job search. More specifically, better-educated immigrant women receive a greater penalty when finding a job through a personal network. In contrast to prior studies, our research thus highlights the negative consequences of network connectedness related to immigrant labor market incorporation.