The economic returns of immigrants' bonding and bridging social capital

Abstract

This thesis aims at analyzing to what extent different forms of social capital can help immigrants in the Netherlands and Germany to make headway on the labour market. Two forms of social capital are identified. Bonding refers to a dense network with thick trust and is measured as the strength of family ties, co-ethnic ties and trust in the family. Bridging implies a crosscutting network with thin trust and is measured as inter-ethnic ties and outward orientation. Making use of quantitative research methods, it is examined to what extent bonding and bridging for immigrants in the Netherlands and Germany explain a higher likelihood of employment, higher income, higher occupational status and shorter unemployment duration. Results show that 1) bridging networks positively affect all economic outcomes identified; 2) bonding networks do not affect economic outcomes; 3) levels of trust (neither thick nor thin) do not explain economic outcomes; 4) returns to social capital are much higher for men than for women; 5) findings are similar for Germany and the Netherlands. Limitations and implications are discussed.