July 2012

IZA DP No. 6742: Liability-of-Foreignness Effects on Job Success of Immigrant Job Seekers

published in: Journal of World Business (Columbia); 2013, 48 (1), 98–109

We examined the liability-of-foreignness (LOF) hypothesis for immigrant and native job seekers by analyzing a national dataset that tracks their use of job-search methods and their associated job outcomes in the Canadian labor market. To our knowledge this is the first empirical test of LOF at the individual-level while controlling for variables at multiple levels. We found support for LOF when job applicants used the rich media job-search methods of social networks and recruitment agencies, but not when they used the lean media of newspaper ads and the internet. Study limitations, implications, and future research are discussed.