Network Effects In Hiring Strategies

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Executive Summary

This paper provides some preliminary insights about the hiring policies at firm level concerning immigrants. In the most recent years, Spain experienced a huge entrance of immigrants and this entrance produced interesting effects on the structure of the local labor market. Rather than focusing on the study of the complementarity and substitutability between natives and immigrants, this analysis provides some evidence about to what extent the recruiting policies adopted for immigrants are driven by the social networks and the changes in the qualifications of the natives. The authors exploit the information at individual level included in the Muestra Continua de Vida Laborales (MCVL) for a period ranging from 1980 to 2008.

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