Social distance, social capital and segmented assimilation : the labour and marriage market experiences of second generation Australians

Abstract

Together with the first generation of immigrants, the second generation constitutes a significant proportion of the Australian population and provides valuable insights into the process of migration and settlement, and subsequent educational and occupational attainment. Although research on intergenerational mobility since the 1980s is not extensive, what research has been undertaken has focussed predominantly on labour market disadvantage. The evidence for many first generation immigrants suggests that factors such as weak English language skills and the failure of Australian employers to recognise overseas schooling and qualifications adequately have lead to initial labour market disadvantage and reduced opportunities for social mobility. However, while the evidence for the first generation is relatively clear-cut, there has been less systematic research on the occupational achievements and earnings of the second. Using ancestry information from the 1986 Census data, this thesis explores such labour market outcomes focussing on specific ancestries: Dutch, German, Hungarian, Polish, Italian and Greek, which are contrasted with members of the majority ancestry group, AngloCelts. Gender comparisons are also made. From this analysis, differential economic outcomes among the second generation were found. These differences were greater when considering educational and occupational outcomes, and less so when considering predicted earnings potential. Overall, the labour market position of the second generation was found to be a function of two factors: social capital and human capital. By incorporating the migration experiences of the first generation two salient findings emerge: (i) ethnic concentration and community formation provide economic and social benefits for immigrants and their children, as well as the wider Australian society; (ii) social distance increases the probability that social capital will be utilised in the creation of human capital among the second generation. Social closure and restricted social interaction with the Anglo-Celtic majority encourage the maintenance of group norms and values, including the economic benefit that education and occupational achievement bring. Economic indicators alone are, therefore, insufficient. The labour market experiences of the second generation can best be understood by including socio-cultural factors.