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

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

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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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1088.

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Length: 27 p.
Date of creation: 2010
Date of revision:
Handle: RePEc:diw:diwwpp:dp1088

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Keywords: Unemployment; Migration; Personality Traits; Risk Attitudes; Time Preferences; Trust; Reciprocity;

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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. 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).
  2. 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.
  3. 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).
  4. 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], Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 44(1/2), pages 81-89.
  5. Constant, Amelie F. & Tien, Bienvenue N., 2011. "Report No. 41: Germany's Immigration Policy and Labor Shortages," IZA Research Reports, Institute for the Study of Labor (IZA) 41, Institute for the Study of Labor (IZA).
  6. 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, HAL halshs-00997502, HAL.
  7. 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.
  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. 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).
  10. 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.

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