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Social Networks And Ethnic Niches: An Econometric Analysis Of The Manufacturing Sector In South Africa

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  • Andre Hofmeyr
Abstract
This paper analyses the link between social networks and ethnic occupational niches in the manufacturing sector in South Africa. To this end, it employs the methodology of Bertrand et al. to minimise the omitted variable bias induced by standard approaches investigating network effects and adopts Model's concentration index to define an ethnic niche. The results indicate that 25% of the sample is employed in ethnic niches in the manufacturing sector, but that niche employment varies markedly by language group. In addition, certain language groups tend to be clustered in advantageous niches where monthly income and skill levels are relatively high, while others occupy disadvantageous niches where monthly income and skill levels are relatively low. A number of different econometric specifications find strong evidence of social network effects. This highlights the role that these networks play in forming ethnic niches in the manufacturing sector in South Africa.

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  • Andre Hofmeyr, 2010. "Social Networks And Ethnic Niches: An Econometric Analysis Of The Manufacturing Sector In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 78(1), pages 107-130, March.
    • Handle: RePEc:bla:sajeco:v:78:y:2010:i:1:p:107-130
    DOI: 10.1111/j.1813-6982.2010.01236.x
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    References listed on IDEAS

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    Cited by:

    1. Kishan Shah & Federico Sturzenegger, 2022. "Search, Transport Costs, and Labor Markets in South Africa," Working Papers 164, Universidad de San Andres, Departamento de Economia, revised Jul 2022.
    2. Kishan Shah & Federico Sturzenegger, 2023. "Search, Transport Costs, and Labor Markets in South Africa," CID Working Papers 142a, Center for International Development at Harvard University.
    3. Dieter von Fintel, 2016. "Wage flexibility in a high unemployment regime: spatial heterogeneity and the size of local labour markets," Working Papers 09/2016, Stellenbosch University, Department of Economics.
    4. Kishan Shah & Federico Sturzenegger, 2022. "Search, Transport Costs, and Labor Markets in South Africa," Working Papers 158, Red Nacional de Investigadores en Economía (RedNIE).
    5. Phillip F. Blaauw & Waldo F. Krugell, 2012. "Micro-evidence on day labourers and the thickness of labour markets in South Africa," Working Papers 282, Economic Research Southern Africa.
    6. KUEPIE Mathias & TENIKUE Michel & WALTHER Olivier, 2014. "Small businesses performance in West African border regions: Do social networks pay off?," LISER Working Paper Series 2014-06, Luxembourg Institute of Socio-Economic Research (LISER).
    7. Walther, Olivier J. & Tenikue, Michel & Trémolières, Marie, 2019. "Economic performance, gender and social networks in West African food systems," World Development, Elsevier, vol. 124(C), pages 1-1.
    8. Pedro Spindler-Ruiz, 2021. "Mexican Niches in the US Construction Industry: 2009–2015," Journal of International Migration and Integration, Springer, vol. 22(2), pages 405-427, June.
    9. Kishan Shah & Federico Sturzenegger, 2023. "Search, Transport Costs, and Labor Markets in South Africa," Growth Lab Working Papers 195, Harvard's Growth Lab.

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