Dr. Sevak Alaverdyan Publishes Article

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The American University of Armenia (AUA) Manoogian Simone College of Business and Economics (CBE) Assistant Professor Dr. Sevak Alaverdyan, jointly with Dr. Anna Zaharieva, chair of Labour Economics, Bielefeld University, Germany, published a study titled “Immigration, Social Networks, and Occupational Mismatch’’ in Economic Modelling.

The study investigates the link between job search channels used to find employment and the probability of occupational mismatch. The research specifically focuses on differences between natives and immigrants using data from the German Socio-Economic Panel (SOEP, 2000-2014). “This study is important in terms of understanding the links between the methods of job search that workers use and the probability of occupational mismatch with a focus on differences between natives and immigrants,” explains Dr. Alaverdyan.

The study documents that referral hiring is the most frequent single channel of generating jobs in Germany; in relative terms, referrals are used more frequently by immigrant workers compared to natives. Referral hiring is associated with the highest rate of occupational mismatch among all channels in Germany. The findings are then aggregated to develop a search and matching model relevant to two ethnic groups, two search channels, and two occupations. The model predicts that the higher rates of referral hiring result in more frequent occupational mismatches among immigrants than among natives. The data confirm the prediction and the underlying mechanism of the model.

Founded in 1991, the American University of Armenia (AUA) is a private, independent university located in Yerevan, Armenia, affiliated with the University of California, and accredited by the WASC Senior College and University Commission in the United States. AUA provides local and international students with Western-style education through top-quality undergraduate, graduate, and certificate programs, promotes research and innovation, encourages civic engagement and community service, and fosters democratic values.