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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. Zimmermann, Klaus F., 2007. "Migrant Ethnic Identity: Concept and Policy Implications," IZA Discussion Papers 3056, Institute for the Study of Labor (IZA).
  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. Amelie F. Constant & Rowan Roberts & Klaus F. Zimmermann, 2009. "Ethnic Identity and Immigrant Homeownership," Urban Studies, Urban Studies Journal Limited, vol. 46(9), pages 1879-1898, August.
  4. Constant, Amelie F. & Gataullina, Liliya & Zimmermann, Klaus F. & Zimmermann, Laura, 2006. "Clash of Cultures: Muslims and Christians in the Ethnosizing Process," IZA Discussion Papers 2350, Institute for the Study of Labor (IZA).
  5. Battu, Harminder & Mwale, MacDonald & Zenou, Yves, 2005. "Oppositional Identities and the Labour Market," CEPR Discussion Papers 5351, C.E.P.R. Discussion Papers.
  6. 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.
  7. 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.
  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. Herbert Gintis & Samuel Bowles & Melissa Osborne, 2001. "Incentive-Enhancing Preferences: Personality, Behavior, and Earnings," American Economic Review, American Economic Association, vol. 91(2), pages 155-158, May.
  10. Alberto Bisin & Eleonora Patacchini & Thierry Verdier & Yves Zenou, 2008. "Are Muslim Immigrants Different in Terms of Cultural Integration?," Journal of the European Economic Association, MIT Press, vol. 6(2-3), pages 445-456, 04-05.
  11. Constant, Amelie & Gataullina, Liliya & Zimmermann, Klaus F, 2006. "Ethnosizing Immigrants," CEPR Discussion Papers 5636, C.E.P.R. Discussion Papers.
  12. 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.
  13. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-18, December.
  14. 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.
  15. Carmel Chiswick, 2009. "The economic determinants of ethnic assimilation," Journal of Population Economics, Springer, vol. 22(4), pages 859-880, October.
  16. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
  17. 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.
  18. Klaus Zimmermann, 2007. "The economics of migrant ethnicity," Journal of Population Economics, Springer, vol. 20(3), pages 487-494, July.
  19. Mason, Patrick L., 2004. "Annual income, hourly wages, and identity Among Mexican Americans and other Latinos," MPRA Paper 11326, University Library of Munich, Germany.
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Citations

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Cited by:
  1. Amelie F. Constant & Annabelle Krause & Ulf Rinne & Klaus F. Zimmermann, 2010. "Economic Preferences and Attitudes of the Unemployed: Are Natives and Second Generation Migrants Alike?," Discussion Papers of DIW Berlin 1088, DIW Berlin, German Institute for Economic Research.
  2. Constant, Amelie F. & Kahanec, Martin & Rinne, Ulf & Zimmermann, Klaus F., 2009. "Ethnicity, Job Search and Labor Market Reintegration of the Unemployed," IZA Discussion Papers 4660, Institute for the Study of Labor (IZA).
  3. Drydakis, Nick, 2012. "The Effect of Ethnic Identity on the Employment of Immigrants," IZA Discussion Papers 6314, Institute for the Study of Labor (IZA).
  4. Duncan, Brian & Trejo, Stephen, 2012. "The Complexity of Immigrant Generations: Implications for Assessing the Socioeconomic Integration of Hispanics and Asians," IZA Discussion Papers 6276, Institute for the Study of Labor (IZA).
  5. 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).
  6. Schüller, Simone, 2011. "Parental Ethnic Identity and Educational Attainment of Second-Generation Immigrants," IZA Discussion Papers 6155, Institute for the Study of Labor (IZA).
  7. 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.
  8. Constant, Amelie F. & Zimmermann, Klaus F., 2009. "Migration, Ethnicity and Economic Integration," IZA Discussion Papers 4620, Institute for the Study of Labor (IZA).
  9. 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).
  10. 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.

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