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Work and Money: Payoffs by Ethnic Identity and Gender

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  • Constant, Amelie
  • Zimmermann, Klaus F.

Abstract

Upon arrival in the host country, immigrants undergo a fundamental identity crisis. Their ethnic identity being questioned, they can be classified into four states - assimilation, integration, separation and marginalization. This is suggested by the ethnosizer, a newly established measure to parameterize a person’s ethnic identity, using individual information on language, culture, societal interaction, history of migration, and ethnic self-identification. In what state individuals end up varies among immigrants even from the same country. Moreover, the quest for ethnic identity affects women and men differentially. This paper contends that ethnic identity can significantly affect the attachment to and performance of immigrants in the host country labor market, beyond human capital and ethnic origin characteristics. Empirical estimates for immigrants in Germany show that ethnic identity is important for the decision to work and significantly and differentially affects the labor force participation of men and women. Women who exhibit the integrated identity are more likely to work than women who are German assimilated; this does not hold for men. However, once we control for selection in the labor market and a slew of individual and labor market characteristics, ethnic identity does not significantly affect the earnings of men or women immigrant workers.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7366.

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Date of creation: Jul 2009
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Handle: RePEc:cpr:ceprdp:7366

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Keywords: ethnic earnings; ethnic identity; ethnicity; Ethnosizer; immigrant assimilation; integration;

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References

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  1. Harminder Battu & McDonald Mwale & Yves Zenou, 2007. "Oppositional identities and the labor market," Journal of Population Economics, Springer, vol. 20(3), pages 643-667, July.
  2. Constant, Amelie F. & Zimmermann, Klaus F., 2007. "Measuring Ethnic Identity and Its Impact on Economic Behavior," IZA Discussion Papers 3063, Institute for the Study of Labor (IZA).
  3. Samuel Bowles & Herbert Gintis & Melissa Osborne, 2001. "Incentive-Enhancing Preferences: Personality, Behavior and Earnings," Working Papers 01-01-004, Santa Fe Institute.
  4. Amelie Constant & Rowan Roberts & Klaus F. Zimmermann, 2007. "Ethnic Identity and Immigrant Homeownership," SOEPpapers on Multidisciplinary Panel Data Research 57, DIW Berlin, The German Socio-Economic Panel (SOEP).
  5. Carmel Chiswick, 2009. "The economic determinants of ethnic assimilation," Journal of Population Economics, Springer, vol. 22(4), pages 859-880, October.
  6. Klaus Zimmermann, 2007. "The economics of migrant ethnicity," Journal of Population Economics, Springer, vol. 20(3), pages 487-494, July.
  7. Bisin, Alberto & Patacchini, Eleonora & Verdier, Thierry & Zenou, Yves, 2007. "Are Muslim Immigrants Different in Terms of Cultural Integration?," IZA Discussion Papers 3006, Institute for the Study of Labor (IZA).
  8. Gianmarco I.P. Ottaviano & Giovanni Peri, 2004. "The Economic Value of Cultural Diversity: Evidence from US Cities," Working Papers 2004.34, Fondazione Eni Enrico Mattei.
  9. Fearon, James D. & Laitin, David D., 2000. "Violence and the Social Construction of Ethnic Identity," International Organization, Cambridge University Press, vol. 54(04), pages 845-877, September.
  10. David Austen-Smith & Roland G. Fryer, 2005. "An Economic Analysis of "Acting White"," The Quarterly Journal of Economics, MIT Press, vol. 120(2), pages 551-583, May.
  11. Darity, William Jr. & Mason, Patrick L. & Stewart, James B., 2006. "The economics of identity: The origin and persistence of racial identity norms," Journal of Economic Behavior & Organization, Elsevier, vol. 60(3), pages 283-305, July.
  12. Bisin, Alberto & Patacchini, Eleonora & Verdier, Thierry & Zenou, Yves, 2006. "'Bend It Like Beckham': Identity, Socialization and Assimilation," CEPR Discussion Papers 5662, C.E.P.R. Discussion Papers.
  13. Mason, Patrick L., 2004. "Annual income, hourly wages, and identity Among Mexican Americans and other Latinos," MPRA Paper 11326, University Library of Munich, Germany.
  14. Amelie Constant & Liliya Gataullina & Klaus F. Zimmermann, 2006. "Ethnosizing Immigrants," Discussion Papers of DIW Berlin 567, DIW Berlin, German Institute for Economic Research.
  15. Constant, Amelie & Gataullina, Liliya & Zimmermann, Klaus F & Zimmermann, Laura, 2006. "Clash of Cultures: Muslims and Christians in the Ethnosizing Process," CEPR Discussion Papers 5910, C.E.P.R. Discussion Papers.
  16. Kuran, Timur, 1998. "Ethnic Norms and Their Transformation through Reputational Cascades," The Journal of Legal Studies, University of Chicago Press, vol. 27(2), pages 623-59, June.
  17. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
  18. Zimmermann, Klaus F., 2007. "Migrant Ethnic Identity: Concept and Policy Implications," IZA Discussion Papers 3056, Institute for the Study of Labor (IZA).
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Citations

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Cited by:
  1. Amelie Constant & Klaus F. Zimmermann, 2009. "Migration, Ethnicity and Economic Integration," Discussion Papers of DIW Berlin 957, DIW Berlin, German Institute for Economic Research.
  2. Georgiadis, Andreas & Manning, Alan, 2013. "One nation under a groove? Understanding national identity," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 166-185.
  3. Constant, Amelie F. & Krause, Annabelle & Rinne, Ulf & Zimmermann, Klaus F., 2010. "Reservation Wages of First and Second Generation Migrants," IZA Discussion Papers 5396, Institute for the Study of Labor (IZA).
  4. 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.
  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. Constant, Amelie F. & Schüller, Simone & Zimmermann, Klaus F., 2013. "Ethnic Spatial Dispersion and Immigrant Identity," IZA Discussion Papers 7868, Institute for the Study of Labor (IZA).
  7. Simone Schüller, 2012. "Parental Ethnic Identity and Educational Attainment of Second-Generation Immigrants," SOEPpapers on Multidisciplinary Panel Data Research 443, DIW Berlin, The German Socio-Economic Panel (SOEP).
  8. Brian Duncan & Stephen J. Trejo, 2012. "The Complexity of Immigrant Generations: Implications for Assessing the Socioeconomic Integration of Hispanics and Asians," CReAM Discussion Paper Series 1201, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  9. Nick Drydakis, 2013. "The effect of ethnic identity on the employment of immigrants," Review of Economics of the Household, Springer, vol. 11(2), pages 285-308, June.
  10. Drydakis, Nick, 2012. "The Effect of Ethnic Identity on the Employment of Immigrants," IZA Discussion Papers 6314, Institute for the Study of Labor (IZA).

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