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Economic Preferences and Attitudes of the Unemployed: Are Natives and Second Generation Migrants Alike?

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

Abstract

In this paper we study the economic effects of risk attitudes, time preferences, trust and reciprocity while we compare natives and second generation migrants. We analyze an inflow sample into unemployment in Germany, and find differences 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. We also find that these differences matter in terms of economic outcomes, and more specifically in terms of the employment probability about two months after unemployment entry. We observe a significantly lower employment probability for individuals with a high willingness to take risks. Some evidence suggests that this result is channeled through reservation wages and search intensity.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8207.

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Date of creation: Jan 2011
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Handle: RePEc:cpr:ceprdp:8207

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Keywords: migration; personality traits; reciprocity; risk attitudes; time preferences; trust; unemployment;

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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. Li Hao & Daniel Houser & Lei Mao & Marie Claire Villeval, 2014. "A Field Study of Chinese Migrant Workers' Attitudes Toward Risks, Strategic Uncertainty, and Competitiveness," Working Papers, George Mason University, Interdisciplinary Center for Economic Science 1047, George Mason University, Interdisciplinary Center for Economic Science.
  2. 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.
  3. 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," IZA Discussion Papers 5485, Institute for the Study of Labor (IZA).
  4. Amelie Constant & Martin Kahanec & Ulf Rinne & Klaus F. Zimmermann, 2009. "Ethnicity, Job Search and Labor Market Reintegration of the Unemployed," Discussion Papers of DIW Berlin 963, DIW Berlin, German Institute for Economic Research.
  5. Giuseppe Albanese & Guido de Blasio & Paolo Sestito, 2013. "Trust and preferences: evidence from survey data," Temi di discussione (Economic working papers), Bank of Italy, Economic Research and International Relations Area 911, Bank of Italy, Economic Research and International Relations Area.
  6. 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), Bank of Italy, Economic Research and International Relations Area 955, Bank of Italy, Economic Research and International Relations Area.
  7. Baert, Stijn & Cockx, Bart, 2013. "Pure ethnic gaps in educational attainment and school to work transitions: When do they arise?," Economics of Education Review, Elsevier, Elsevier, vol. 36(C), pages 276-294.
  8. 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).
  9. 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).
  10. Marco Caliendo & Armin Falk & Lutz C. Kaiser & Hilmar Schneider & Arne Uhlendorff & Gerard van den Berg & Klaus F. Zimmermann, 2011. "The IZA Evaluation Dataset: towards evidence-based labor policy making," International Journal of Manpower, Emerald Group Publishing, Emerald Group Publishing, vol. 32(7), pages 731-752, November.

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