| I analyze the labor market experiences of immigrants legalized through the Immigration, Reform and Control Act of 1986. The detailed information collected through the Legalized Population Survey (1989 and 1992) enabled multivariate analysis of social and human capital determinants of economic well-being. By human capital, I am referring to employee skills and education which make immigrant employees desirable to employers. By social capital, I am referring to immigrants' social networks and the information these provide and group norms and values that influence immigrant behavior. Human capital theorists portray labor market outcomes as determined by each individual's acquired skill level. Social capital theorists examine both individual and group determinants found in social networks, as influenced by the values, obligations and expectations and trust between group members.; Regarding human capital, I find that immigrants with the most human capital acquire the best labor market outcomes, as they acquire the highest incomes and are more likely to experience positive income mobility. Acquiring more human capital leads immigrants to shorter job tenures, as immigrants with higher levels of human capital job jump to improve employment conditions once they become legal residents of the United States. However, human capital is not found to be related to informal labor market participation.; Although human capital theory has been the main theoretical framework used to explain labor markets, I find that access to and use of social capital positively impact the labor market outcomes of undocumented and documented immigrants. In general, immigrants who have access to social capital and utilize this social capital to find employment earn higher incomes, obtain positive income mobility and longer lasting jobs. Having access to social capital is also negatively related with informal labor market participation.; Both social capital and human capital lead immigrants to positive labor market outcomes. Both theories are supported by my analysis, suggesting that both theoretical frameworks should be considered when analyzing the labor market outcomes of undocumented and documented immigrants. I find, in contrast to past research which suggests that labor market outcomes are solely determined by immigrant's investment in human capital, that the labor market incorporation of immigrants is also a social process. |
