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Labor market outcomes of immigrants and non-citizens in the EU: An East-West comparison

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Author Info

  • Martin Kahanec
  • Anzelika Zaiceva

Abstract

Purpose – The purpose of this paper is to comparatively analyse the roles of foreign origin and citizenship in the labor markets of Eastern and Eestern Member States of the EU. Design/methodology/approach – The EU Survey of Income and Living Conditions is used to evaluate the roles of foreign origin and citizenship on employment and earnings using the standard Probit and OLS econometric models. The native/non-native labor market divide is measured using Fairlie and Oaxaca-Blinder decomposition techniques. Findings – The results indicate that, while predominantly foreign origin is of key importance in the Western EU Member States, both foreign origin and citizenship matter in the Eastern EU Member States, their roles depending on gender. Moreover, the evidence suggests that the effects of citizenship in the EU8 may be driven by the (predominantly ethnic Russian) non-citizens in Estonia and Latvia. Research limitations/implications – Further analysis is necessary to evaluate the observed associations as causal relationships. Originality/value – The study is the first to shed light on the role of foreign origin and citizenship in the EU8 and the EU15 in the comparative East-West perspective. The findings have noteworthy implications for the targeting of national as well as EU-wide integration policies.

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Bibliographic Info

Article provided by Emerald Group Publishing in its journal International Journal of Manpower.

Volume (Year): 30 (2009)
Issue (Month): 1/2 (May)
Pages: 97-115

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Handle: RePEc:eme:ijmpps:v:30:y:2009:i:1/2:p:97-115

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Related research

Keywords: Citizenship; Earnings; Eastern Europe; Employment; Immigrants; Labour market;

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References

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  1. Bernt Bratsberg & James F. Ragan & Zafar M. Nasir, 2002. "The Effect of Naturalization on Wage Growth: A Panel Study of Young Male Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 568-597, July.
  2. DeVoretz, Don J., 2006. "The Economics of Citizenship: A Common Intellectual Ground for Social Scientists?," IZA Discussion Papers 2392, Institute for the Study of Labor (IZA).
  3. Alicia Adsera & Barry Chiswick, 2007. "Are there gender and country of origin differences in immigrant labor market outcomes across European destinations?," Journal of Population Economics, Springer, vol. 20(3), pages 495-526, July.
  4. Constant, Amelie F. & Kahanec, Martin & Zimmermann, Klaus F., 2006. "The Russian-Ukrainian Political Divide," IZA Discussion Papers 2530, Institute for the Study of Labor (IZA).
  5. Amuedo-Dorantes, Catalina & de la Rica, Sara, 2006. "Labor Market Assimilation of Recent Immigrants in Spain," IZA Discussion Papers 2104, Institute for the Study of Labor (IZA).
  6. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
  7. Constant, Amelie F. & Kahanec, Martin & Zimmermann, Klaus F., 2006. "The Russian-Ukrainian Earnings Divide," IZA Discussion Papers 2330, Institute for the Study of Labor (IZA).
  8. Martin Kahanec & Mariapia Mendola, 2007. "Social Determinants of Labor Market Status of Ethnic Minorities in Britain," Working Papers 125, University of Milano-Bicocca, Department of Economics, revised Nov 2007.
  9. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  10. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October.
  11. Chiswick, Barry R. & Le, Anh T. & Miller, Paul W., 2006. "How Immigrants Fare Across the Earnings Distribution: International Analyses," IZA Discussion Papers 2405, Institute for the Study of Labor (IZA).
  12. Kristjan-Olari Leping & Ott Toomet, 2007. "Ethnic Wage Gap And Political Break-Ups: Estonia During Political And Economic Transition," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 53, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  13. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  14. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
  15. Zimmermann, Klaus F. (ed.), 2005. "European Migration: What Do We Know?," OUP Catalogue, Oxford University Press, number 9780199257355.
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Citations

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Cited by:
  1. Rinne, Ulf & Schüller, Simone & Zimmermann, Klaus F., 2011. "Ethnische Vielfalt und Arbeitsmarkterfolg (Ethnic diversity and labor market success)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 44(1/2), pages 81-89.
  2. Martin Kahanec & Anzelika Zaiceva & Klaus F. Zimmermann, 2010. "Ethnic Minorities in the European Union: An Overview," Discussion Papers of DIW Berlin 1090, DIW Berlin, German Institute for Economic Research.
  3. Hazans, Mihails, 2011. "Informal workers across Europe : evidence from 30 European countries," Policy Research Working Paper Series 5912, The World Bank.
  4. Fang, Tony & Samnani, Al-Karim & Novicevic, Milorad M. & Bing, Mark N., 2013. "Liability-of-foreignness effects on job success of immigrant job seekers," Journal of World Business, Elsevier, vol. 48(1), pages 98-109.
  5. Amelie F. Constant & Annabelle Krause & Ulf Rinne & Klaus F. Zimmermann, 2011. "Economic preferences and attitudes of the unemployed: Are natives and second generation migrants alike?," International Journal of Manpower, Emerald Group Publishing, vol. 32(7), pages 825-851, November.
  6. Rovelli, Riccardo & Zaiceva, Anzelika, 2009. "Transition Fatigue? Cross-Country Evidence from Micro Data," IZA Discussion Papers 4224, Institute for the Study of Labor (IZA).
  7. Gligorov, Vladimir, 2009. "Mobility and Transition in Integrating Europe," MPRA Paper 19198, University Library of Munich, Germany.
  8. Kahanec, Martin, 2012. "Report No. 49: Skilled Labor Flows: Lessons from the European Union," IZA Research Reports 49, Institute for the Study of Labor (IZA).
  9. Zimmermann, Klaus F. & Kahanec, Martin & Giulietti, Corrado & Guzi, Martin & Barrett, Alan & Maitre, Bertrand, 2012. "Report No. 43: Study on Active Inclusion of Migrants," IZA Research Reports 43, Institute for the Study of Labor (IZA).
  10. Hazans, Mihails & Philips, Kaia, 2011. "The Post-Enlargement Migration Experience in the Baltic Labor Markets," IZA Discussion Papers 5878, Institute for the Study of Labor (IZA).
  11. Hazans, Mihails, 2011. "What Explains Prevalence of Informal Employment in European Countries: The Role of Labor Institutions, Governance, Immigrants, and Growth," IZA Discussion Papers 5872, Institute for the Study of Labor (IZA).
  12. Hamori, Szilvia, 2009. "Employment convergence of immigrants in the EU: Differences across genders, regions of origin and destination," HWWI Research Papers 3-20, Hamburg Institute of International Economics (HWWI).
  13. Leping, Kristian-Olari & Toomet, Ott, 2008. "Emerging ethnic wage gap: Estonia during political and economic transition," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 599-619, December.
  14. Martin Kahanec, 2013. "Skilled Labor Flows: Lessons from the European Union," Research Reports 1, Central European Labour Studies Institute (CELSI).

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