%0 Journal Article %T A Matching Model on the Use of Immigrant Social Networks and Referral Hiring %A M¨®nica Garc¨ªa-P¨¦rez %J Theoretical Economics Letters %P 379-384 %@ 2162-2086 %D 2012 %I Scientific Research Publishing %R 10.4236/tel.2012.24070 %X Using a simple search model, with urn-ball derived matching function, this paper investigates the effect of firm owner¡¯s and coworkers¡¯ nativity on hiring patterns and wages. In the model, social networks reduce search frictions and wages are derived endogenously as a function of the efficiency of the social ties of current employees. As a result, individuals with more efficient connections tend to receive higher wages and lower unemployment rate. However, because this efficiency depends on matching with same-type owners and coworkers, there is also a differential effect among workers¡¯ wages in the same firm. This analysis highlights the potential importance of social connections and social capital for understanding employment opportunities and wage differentials between these groups. %K Immigration %K Search Models %K Social Networks %K Wage Differential %K Hiring Process %U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=24230