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Work and Money: Payoffs by Ethnic Identity and Gender

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Author Info
Constant, Amelie
Zimmermann, Klaus F.

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

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Find related papers by JEL classification:
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
Z10 - Other Special Topics - - Cultural Economics - - - General

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  1. Constant, Amelie F. & Gataullina, Liliya & Zimmermann, Klaus F., 2009. "Ethnosizing immigrants," Journal of Economic Behavior & Organization, Elsevier, vol. 69(3), pages 274-287, March. [Downloadable!] (restricted)
    Other versions:
  2. Klaus Zimmermann, 2007. "The economics of migrant ethnicity," Journal of Population Economics, Springer, vol. 20(3), pages 487-494, July. [Downloadable!] (restricted)
  3. Carmel U. Chiswick, 2006. "The Economic Determinants of Ethnic Assimilation," IZA Discussion Papers 2212, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. 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. [Downloadable!] (restricted)
  5. 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, November. [Downloadable!]
  6. Kuran, Timur, 1998. "Ethnic Norms and Their Transformation through Reputational Cascades," Journal of Legal Studies, University of Chicago Press, vol. 27(2), pages 623-59, June.
  7. Mason, Patrick L., 2004. "Annual income, hourly wages, and identity Among Mexican Americans and other Latinos," MPRA Paper 11326, University Library of Munich, Germany. [Downloadable!]
  8. 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. [Downloadable!] (restricted)
    Other versions:
  9. Gianmarco I.P. Ottaviano & Giovanni Peri, 2006. "The economic value of cultural diversity: evidence from US cities," Journal of Economic Geography, Oxford University Press, vol. 6(1), pages 9-44, January. [Downloadable!] (restricted)
    Other versions:
  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. Amelie F. Constant & Klaus F. Zimmermann, 2008. "Measuring Ethnic Identity and its Impact on Economic Behavior," Journal of the European Economic Association, MIT Press, vol. 6(2-3), pages 424-433, 04-05. [Downloadable!] (restricted)
    Other versions:
  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. [Downloadable!] (restricted)
  13. Klaus F. Zimmermann, 2007. "Migrant Ethnic Identity: Concept and Policy Implications," IZA Discussion Papers 3056, Institute for the Study of Labor (IZA). [Downloadable!]
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  14. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August. [Downloadable!] (restricted)
  15. Samuel Bowles & Herbert Gintis & Melissa Osborne, 2001. "Incentive-Enhancing Preferences: Personality, Behavior and Earnings," Working Papers 01-01-004, Santa Fe Institute.
    Other versions:
  16. 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. [Downloadable!] (restricted)
    Other versions:
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