V. Leone Sciabolazza, R. Vacca, L. De Benedictis, The Effect of Network Ethnic Segregation on Wage Formation: The Case of Sri-Lankan Immigrants in the City of Milan, Italy. [Submitted]

This paper delves into well-known results on the positive effects of social networks on job search in immigrant communities, to explore the informational content provided by social networks of acquaintances and its effects on the economic attainment of immigrants. Using data from a 2012 survey on personal networks and daily activity spaces of Sri Lankan immigrants in Milan, Italy, our results confirm that access to distant and diverse social circles bear distinct positive effects on immigrants’ socioeconomic attainment. However, we find that this effect is less significant when information in social circuits is more heterogeneous. The highest benefits in terms of wage are associated with either high levels of social network integration in Italian society, or high levels of network segregation within the Sri Lankan community. A number of innovative robustness checks are provided to assess the consistency of our econometric result.

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