In: Economics
(TRUE/FALSE/UNCERTAIN QUESTION - Please explain your reasoning)
New immigrants typically choose the same occupations as their compatriots. The ones who choose the most common occupation of their compatriots enjoy a large and positive earnings effect.
It shall be noted that the very reason that people migrate is to look for a better opportunity for living. One of the main drivers that propel people to migrate is the success stories and evidence of better living that is being told about the people who have already migrated.
The people migrating do not want to face new kinds of troubles in a new place when they have left their native place for better living. There is some kind of herd behavior that is shown by these people migrating.
They choose to work in the same areas in which their compatriots work so that there remains a social connection between them which in turn would help them collectively resolve an issue that may arise in the way of working. With connections at work front with the compatriots, there exists a guide for the quick learning opportunity both laterally and vertically.
Trust building help migrants to learn from each other and widen their horizon which in turn help them to earn higher.
Thus, not only at work front, at various other fronts, choosing the same occupations as that of compatriots to help migrants strengthen their networks.
Hence, the given statement is TRUE.