Chapter 3
Introduction
Yet it is hard to miss that most migrants move from relatively poorer places to relatively
wealthier or more economically dynamic places and that many, if not most, of the world’s
migrants are seeking jobs, higher wages, and better opportunities. Most migrants have some
economic component, and so it is not surprising that most theoretical explanations of
migration refer in one way or another to labour market dynamics, whether in terms of wage
disparities, labour supply and demand, uneven economic development, or exploitation.
Migrants from relatively poor societies ten to cluster in low-waged, low-skilled occupations
in relatively wealthy societies.
Migrants are not homogenous but rather are differently positioned in hierarchies of class,
race, gender, nationality, and legal status; moreover, they enter labour markets that are
highly segmented in terms of sector, skills and social status.
Matching workers to jobs: skills, education and qualifications
When workers enter the labour market, they choose, and are chosen by, employers for
positions based on their qualifications, skills, training and educational level.
Human capital = means of recognizing the differentiation of workers by skill and educational
levels. Human capital refers to an individual’s stock of marketable skills and abilities.
The idea her is that workers become more valuable in terms of productivity by acquiring
knowledge and skill and therefore command higher salaries and incomes. Investments in
human capabilities offer the prospect of economic growth for firms and for society at large.
Many of the disparities we see in labour markets are a result of differential levels of
investment in human capital.
Human capital do not necessarily dismiss the effects of discriminations on workers’ earnings
and opportunities: educational attainment reflects access to better schools and teachers,
which are more commonly found in wealthier, whiter neighbourhoods.
Immigrant social capital in the labour market
The clustering of certain kinds of workers in certain professions and jobs may have
something to do with human capital, but such patterns encourage us to think about social
relationships and networks that can increase access to employment in particular sectors.
These relationships and networks are often referred to as social capital. Social capital
suggests that job options and choices are shaped not only by an individual’s skill levels, but
also by the social networks through which individuals and groups acquire information about
jobs, learn about prospective employers and engage in market-based exchange. Social
capital has referred more specifically to relationships of obligation, reciprocity, mutuality,
and trust based on kinship, co-ethnicity, and place of birth. The iteration of this process
within a given group can lead eventually to self-sustaining patterns of chain migration and to
the creation of ethnic occupational niches and residential enclaves. Gender based networks
may act independently of ethnic based networks to shape labour market outcomes.
The concept of social capital has been especially influential in discussions of immigrant
entrepreneurialism and the clustering of immigrant-owned small business in certain
economic sectors. Many scholars have explained this variability in terms of social capital,
arguing that even in the absence of human capital, immigrants are able to mobilize strong
kinship and ethnic solidarities and networks to generate income. Scholars often refer to the
Introduction
Yet it is hard to miss that most migrants move from relatively poorer places to relatively
wealthier or more economically dynamic places and that many, if not most, of the world’s
migrants are seeking jobs, higher wages, and better opportunities. Most migrants have some
economic component, and so it is not surprising that most theoretical explanations of
migration refer in one way or another to labour market dynamics, whether in terms of wage
disparities, labour supply and demand, uneven economic development, or exploitation.
Migrants from relatively poor societies ten to cluster in low-waged, low-skilled occupations
in relatively wealthy societies.
Migrants are not homogenous but rather are differently positioned in hierarchies of class,
race, gender, nationality, and legal status; moreover, they enter labour markets that are
highly segmented in terms of sector, skills and social status.
Matching workers to jobs: skills, education and qualifications
When workers enter the labour market, they choose, and are chosen by, employers for
positions based on their qualifications, skills, training and educational level.
Human capital = means of recognizing the differentiation of workers by skill and educational
levels. Human capital refers to an individual’s stock of marketable skills and abilities.
The idea her is that workers become more valuable in terms of productivity by acquiring
knowledge and skill and therefore command higher salaries and incomes. Investments in
human capabilities offer the prospect of economic growth for firms and for society at large.
Many of the disparities we see in labour markets are a result of differential levels of
investment in human capital.
Human capital do not necessarily dismiss the effects of discriminations on workers’ earnings
and opportunities: educational attainment reflects access to better schools and teachers,
which are more commonly found in wealthier, whiter neighbourhoods.
Immigrant social capital in the labour market
The clustering of certain kinds of workers in certain professions and jobs may have
something to do with human capital, but such patterns encourage us to think about social
relationships and networks that can increase access to employment in particular sectors.
These relationships and networks are often referred to as social capital. Social capital
suggests that job options and choices are shaped not only by an individual’s skill levels, but
also by the social networks through which individuals and groups acquire information about
jobs, learn about prospective employers and engage in market-based exchange. Social
capital has referred more specifically to relationships of obligation, reciprocity, mutuality,
and trust based on kinship, co-ethnicity, and place of birth. The iteration of this process
within a given group can lead eventually to self-sustaining patterns of chain migration and to
the creation of ethnic occupational niches and residential enclaves. Gender based networks
may act independently of ethnic based networks to shape labour market outcomes.
The concept of social capital has been especially influential in discussions of immigrant
entrepreneurialism and the clustering of immigrant-owned small business in certain
economic sectors. Many scholars have explained this variability in terms of social capital,
arguing that even in the absence of human capital, immigrants are able to mobilize strong
kinship and ethnic solidarities and networks to generate income. Scholars often refer to the
