Settlement: education, labormarket, social networks
7 important questions on Settlement: education, labormarket, social networks
Ethnic stratification of the labour market
- On a normative level could be repaired by policies, inequality we find not a good thing = ethics.
- Efficiency = different outcomes in labourmarket is not efficient.
3 theories that explain ethnic inequality
- Human capital / Credentialing
- Social capital
- Ethnic discrimination
Human Capital theory
Two reasons why HC is important for ethnic inequality on the labour market:
- Compositional effects
- Transferability of skills (and degrees).
- Higher grades + faster learning
- Never study anything twice
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Human capital explanation of ethnic inequality
- Individual skills determine success on the labor market.
- Education can be seen as the most important provider of human capital = it is to equip individuals with skills.
- Explanation for disadvantage for immigrants:
- Limited portability of skills from educational institution in the origin country to labor market of the destination country--> the wrong skills.
- Educational institutions in origin countries might be of lower quality --> less skills.
- Therefore: returns to education are lower for people with foreign degrees.
2. Transferability of degrees: credentialing theory
- People are not only rewarded for their skills, but also for their degree.
- Degrees ‘signal’ certain characteristics (quality, knowledge).
- Because employers do not have complete information about the productivity of job seekers, they use educational degrees as a signal to screen employees. (=statistical)
- Even if education does not contribute anything to the productivity of employees, degrees are still valuable for employees, as they signal quality.
Signaling = statistical discriminatie
Signaling theory assumes that education functions as a sorting machine, rather than as a skill provider.
People with a foreign degree have inferior:minderwaardig signaling value of their degree, because employers may not know what the diploma represents.
- You dont know what skills are in the degree, but education sorts people over jobs (like orange sorting process).
- Disadvantage for immigrants maybe.
Human capital vs Social capital
Social capital: social network; how these people are embedded in their social relations, and see to what extend this actually matters for their labourmarket outcomes.
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
