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Economic preferences and attitudes of the unemployed: Are natives and second generation migrants alike?

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Author Info

  • Amelie F. Constant
  • Annabelle Krause
  • Ulf Rinne
  • Klaus F. Zimmermann

Abstract

Purpose – The aim of this paper is to study the economic effects of risk attitudes, time preferences, trust and reciprocity and to compare natives and second generation migrants. Design/methodology/approach – This paper is based on the IZA Evaluation Dataset, a recently collected survey of a representative inflow sample into unemployment in Germany. The data include a large number of migrant-specific variables as well as information about economic preferences and attitudes. This allows an assessment of whether and how unemployed second generation migrants differ from unemployed natives in terms of economic preferences and attitudes. Findings – Differences are found between the two groups mainly in terms of risk attitudes and positive reciprocity. Second generation migrants have a significantly higher willingness to take risks and they are less likely to have a low amount of positive reciprocity when compared to natives. It was also found that these differences matter in terms of economic outcomes, and more specifically in terms of the employment probability about two months after unemployment entry. Research limitations/implications – The findings offer interesting perspectives, e.g. with regard to the design and targeting of active labor market policy. It may be reasonable to specifically focus on less risk averse individuals with measures such as job search requirements and monitoring. Originality/value – This paper provides novel and direct evidence on the relationship between economic preferences, attitudes and labor market reintegration of natives and second generation migrants.

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Bibliographic Info

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

Volume (Year): 32 (2011)
Issue (Month): 7 (November)
Pages: 825-851

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Handle: RePEc:eme:ijmpps:v:32:y:2011:i:7:p:825-851

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Related research

Keywords: Ethnography; Germany; Immigrants; Migration; Personality traits; Reciprocity; Risk attitudes; Time preferences; Trust; Unemployment;

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References

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  1. Economic Preferences and Attitudes of the Unemployed: Are Natives and Second Generation Migrants Alike?
    by maximorossi in NEP-LTV blog on 2011-01-06 13:27:22
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Cited by:
  1. Arni, Patrick & Caliendo, Marco & Künn, Steffen & Zimmermann, Klaus F., 2014. "The IZA Evaluation Dataset Survey: A Scientific Use File," IZA Discussion Papers 7971, Institute for the Study of Labor (IZA).
  2. Stijn BAERT & Bart COCKX, 2013. "Pure Ethnic Gaps in Educational Attainment and School to Work Transitions. When Do They Arise?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2013005, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  3. Caliendo, Marco & Falk, Armin & Kaiser, Lutz C. & Schneider, Hilmar & Uhlendorff, Arne & van den Berg, Gerard J. & Zimmermann, Klaus F., 2010. "The IZA Evaluation Dataset: Towards Evidence-Based Labor Policy-Making," IZA Discussion Papers 5400, Institute for the Study of Labor (IZA).
  4. Hao, Li & Houser, Daniel & Mao, Lei & Villeval, Marie Claire, 2014. "A Field Study of Chinese Migrant Workers' Attitudes toward Risks, Strategic Uncertainty, and Competitiveness," IZA Discussion Papers 8227, Institute for the Study of Labor (IZA).
  5. Amelie F. Constant & Martin Kahanec & Ulf Rinne & Klaus F. Zimmermann, 2011. "Ethnicity, job search and labor market reintegration of the unemployed," International Journal of Manpower, Emerald Group Publishing, vol. 32(7), pages 753-776, November.
  6. Rinne, Ulf & Schüller, Simone & Zimmermann, Klaus F., 2010. "Ethnische Vielfalt und Arbeitsmarkterfolg," IZA Standpunkte 34, Institute for the Study of Labor (IZA).
  7. Giuseppe Albanese & Guido de Blasio & Paolo Sestito, 2014. "My parents taught me. Evidence on the family transmission of values," Temi di discussione (Economic working papers) 955, Bank of Italy, Economic Research and International Relations Area.
  8. Bergemann, Annette & Caliendo, Marco & van den Berg, Gerard J. & Zimmermann, Klaus F., 2011. "The threat effect of participation in active labor market programs on job search behavior of migrants in Germany," Working Paper Series 2011:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  9. Giuseppe Albanese & Guido de Blasio & Paolo Sestito, 2013. "Trust and preferences: evidence from survey data," Temi di discussione (Economic working papers) 911, Bank of Italy, Economic Research and International Relations Area.
  10. Constant, Amelie F. & Tien, Bienvenue N., 2011. "Report No. 41: Germany's Immigration Policy and Labor Shortages," IZA Research Reports 41, Institute for the Study of Labor (IZA).

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