This research paper investigates the factors contributing to the socioeconomic disadvantages experienced by immigrants in the Spanish labor market, particularly focusing on Moroccan and Ecuadorian immigrants in Catalonia. The existing literature offers two main explanations for these disparities: human capital theory and labor market stratification theory. Human capital theory posits that differences in education, skills, and language proficiency determine labor market outcomes. However, this approach is criticized for overlooking the structural barriers immigrants face. Labor market stratification theory, conversely, emphasizes the role of segmented labor markets, where immigrants are often relegated to secondary sectors characterized by low wages, job instability, and limited opportunities for advancement. This segregation is often along ethnic lines, creating “ethnic occupational niches” in sectors like construction, agriculture, hospitality, and domestic work—sectors often shunned by native-born Spaniards. Furthermore, this segregation is exacerbated by gender, with immigrant women disproportionately concentrated in the most precarious and undervalued positions within these niches. A third perspective, the social network approach, highlights the importance of social capital and connections in job acquisition and career progression. However, this perspective often overlooks the interplay between social networks and the broader structural constraints imposed by labor market stratification. This study bridges this gap by analyzing the interplay between human capital, labor market stratification, and social networks in determining the occupational attainment of Moroccan and Ecuadorian immigrants in Catalonia, paying close attention to gender differences and the type of social capital employed (ties with native Spaniards, co-ethnics in Spain, and co-ethnics in the country of origin).

The literature review examines three prominent theoretical frameworks relevant to immigrant labor market integration: human capital theory, labor market stratification theory, and the social network perspective. Human capital theory emphasizes the role of individual skills and education in determining labor market success, arguing that immigrants' initial disadvantages are temporary and diminish over time as they acquire host-country skills and experience. Labor market stratification theory, however, challenges this view by highlighting the role of structural factors, like employer discrimination and segmented labor markets, in perpetuating immigrant disadvantage. This theory suggests that the labor market is divided into primary and secondary segments, with immigrants disproportionately concentrated in the secondary segment characterized by precarious work conditions and low pay. This concentration is often reinforced by ethnic occupational niches, where specific industries or occupations become predominantly filled by immigrants. The social network perspective focuses on the role of social capital, defined as the resources embedded in social relationships, in accessing job opportunities and achieving higher occupational status. This approach suggests that strong ties within ethnic communities may facilitate initial entry into the labor market but may limit upward mobility, while weak ties with native-born populations might be crucial for accessing higher-status positions. The review also considers the debate surrounding the relative importance of different types of social ties, including transnational networks with individuals in the home country, versus local networks within the host country. Finally, intersectionality is introduced as a lens through which to examine how gender intersects with ethnicity in shaping the experience and outcomes of immigrant women in the labor market, often resulting in double or triple discrimination.

This study employs a network-based methodology using data collected in 2009-2010 from a survey of 153 Ecuadorian and Moroccan immigrants in Catalonia, Spain. The survey used a non-probability quota sampling method, stratifying the sample by city of residence, age, gender, and origin to reflect the characteristics of the Catalan immigrant population. The sample slightly overrepresented individuals with higher educational levels, especially among Moroccans. The primary data source was a personal network survey, where each respondent was asked to identify 30 individuals they had contacted in the previous two years and who knew them by name. Detailed information was gathered about each contact, including their relationship to the respondent and whether they provided employment-related support. The analysis focuses on the type of social support received, differentiating between support from native-born Spaniards, co-ethnics residing in Spain, and co-ethnics residing in the country of origin. The key outcome variable is occupational status, categorized as either medium-high (business owners, professionals, qualified workers with management responsibilities) or low (unqualified workers). Human capital is measured by educational level, and the analysis accounts for whether the job is within an ethnic occupational niche (construction, agriculture, hospitality, retail, or domestic work). Logistic regression analysis was used to test the effects of social capital, human capital, sector of employment, gender, ethnic group, and length of residence on occupational status. Interaction effects were also analyzed to explore gendered differences in the returns to social capital, human capital, and sector of employment. The significance level was set at 0.05 (**) and 0.1 (*), adjusted for the small sample size to avoid false negatives. The study acknowledges the potential for reverse causality, as participation in the labor market may itself influence network formation.

The analysis reveals that access to employment-related support through social networks is significantly more common among immigrants than the native-born population. The most impactful type of social capital for achieving higher occupational status was found to be supportive contacts with native-born Spaniards. In contrast, transnational ties with co-ethnics in their country of origin were not significantly associated with higher occupational status. This suggests that local connections are more crucial for labor market success than transnational networks, particularly for recent economic immigrants working in the secondary sector. Human capital, as measured by education level, was initially a significant predictor of occupational status but lost significance when controlling for the sector of employment, indicating that the influence of education is largely mediated by the concentration in ethnic occupational niches. The results strongly support the existence of a significant gender gap in occupational status, even after controlling for other factors. Interaction effects revealed that while supportive contacts with native-born Spaniards positively influence occupational status regardless of gender, this effect was significantly stronger for men. The most significant interaction effect was observed between the sector of employment and gender, indicating that the ethnic occupational niche acts as a stronger trap for immigrant women, limiting their opportunities for upward mobility. The study suggests that the Spanish labor market is characterized by both ethnic and gender-based segmentation.

The findings challenge the assumption of a meritocratic labor market, demonstrating the significant role of both structural factors and social networks in shaping labor market outcomes for immigrants. The strong positive effect of ties with native-born Spaniards on occupational status emphasizes the importance of bridging social capital in overcoming ethnic divides. The weak role of transnational ties contrasts with previous research emphasizing their importance for high-skilled migrants and highlights the contextual specificity of social capital's effects. The finding that sector of employment mediates the influence of education level further underscores the significance of ethnic occupational niches in shaping immigrant labor market experiences. The gender gap in occupational status and the stronger ‘sticky floor’ effect for immigrant women within ethnic niches demonstrate the intersecting nature of gender and ethnic inequalities. The results suggest that policies aimed at improving labor market integration should focus not only on individual human capital development but also on addressing structural barriers and promoting social inclusion through effective integration strategies.

This study provides valuable insights into the complex interplay of human capital, social capital, and structural factors in shaping the labor market experiences of immigrant men and women in Spain. The findings highlight the importance of bridging social capital in overcoming ethnic occupational segregation. However, the study also reveals that the returns to social capital are significantly influenced by gender, underscoring the persistence of gendered inequalities in the Spanish labor market. Future research could benefit from a longitudinal design to better understand the dynamic relationship between network formation and labor market outcomes. Additionally, including measures of language proficiency and legal status would enrich the analysis. The results of this study underscore the need for interventions that address both individual and structural factors contributing to ethnic and gender inequalities in the labor market.

The study's primary limitation is the small sample size, potentially limiting the generalizability of the findings. The cross-sectional nature of the data also prevents establishing definitive causal relationships between social capital and labor market outcomes. The reliance on self-reported data on network ties and employment-related support may also introduce some bias. Finally, the lack of data on language proficiency and legal status limits the scope of the analysis. Despite these limitations, the study provides valuable insights into the factors shaping immigrant labor market integration in Spain.