%0 Report %A Kalfa, Eleni %A Piracha, Matloob %T Social Networks and the Labour Market Mismatch %D 2015 %8 2015 Nov %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 9493 %U https://www.iza.org/publications/dp9493 %X This paper assesses the extent to which social contacts and ethnic concentration affect the education-occupation mismatch of natives and immigrants. Using Australian panel data and employing a dynamic random effects probit model, we show that social capital exacerbates the incidence of over-education, particularly for females. Furthermore, for the foreign-born, ethnic concentration significantly increases the incidence of over-education. Using an alternative index, we also show that social participation, friends and support and ethnic concentration are the main contributors in generating a mismatch, while reciprocity and trust does not seem to have any effect on over-education for both, immigrants and natives. Finally, we show that social networks are more beneficial for the relatively better educated. %K over-education %K ethnic concentration %K social capital