The Impact of Human and Social Capital on Immigrants’ Employment and Occupational Status

Although it has been hypothesized in the literature that human capital acquired in the host country and connections to natives are important for the economic performance of immigrants, few studies have examined these relations empirically. This study simultaneously examines the role of human and social capital in the economic incorporation of immigrants, using large-scale data on immigrants in the Netherlands. It appears that the returns to host-country specific human capital are much larger than to origin-specific human capital. The role of host-country specific human capital is largely direct, and cannot be explained by having more social contacts with natives. We find little support for the presumed positive outcomes of social capital.