Advanced Search
MyIDEAS: Login

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

Contents:

Author Info

  • 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.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.365406.de/dp1088.pdf
Download Restriction: no

Bibliographic Info

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

as in new window
Length: 27 p.
Date of creation: 2010
Date of revision:
Publication status: Published in: International Journal of Manpower 32 (2011) No.7, 753-776
Handle: RePEc:diw:diwwpp:dp1088

Contact details of provider:
Postal: Mohrenstraße 58, D-10117 Berlin
Phone: xx49-30-89789-0
Fax: xx49-30-89789-200
Email:
Web page: http://www.diw.de/en
More information through EDIRC

Related research

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

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Jeffrey Butler & Paola Giuliano & Luigi Guiso, 2009. "The Right Amount of Trust," EIEF Working Papers Series 0908, Einaudi Institute for Economics and Finance (EIEF), revised Sep 2009.
  2. Gibson, John & McKenzie, David, 2011. "The microeconomic determinants of emigration and return migration of the best and brightest: Evidence from the Pacific," Journal of Development Economics, Elsevier, vol. 95(1), pages 18-29, May.
  3. Kahanec, Martin & Zaiceva, Anzelika, 2008. "Labor Market Outcomes of Immigrants and Non-Citizens in the EU: An East-West Comparison," IZA Discussion Papers 3420, Institute for the Study of Labor (IZA).
  4. Paserman, Marco Daniele, 2004. "Job Search and Hyperbolic Discounting: Structural Estimation and Policy Evaluation," CEPR Discussion Papers 4396, C.E.P.R. Discussion Papers.
  5. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Jürgen Schupp & Gert G. Wagner, 2005. "Individual Risk Attitudes: New Evidence from a Large, Representative, Experimentally-Validated Survey," Discussion Papers of DIW Berlin 511, DIW Berlin, German Institute for Economic Research.
  6. Marco Caliendo & Ricarda Schmidl & Arne Uhlendorff, 2010. "Social Networks, Job Search Methods and Reservation Wages: Evidence for Germany," Discussion Papers of DIW Berlin 1055, DIW Berlin, German Institute for Economic Research.
  7. 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, vol. 32(7), pages 731-752, November.
  8. Borghans, Lex & Duckworth, Angela Lee & Heckman, James J. & ter Weel, Bas, 2008. "The Economics and Psychology of Personality Traits," IZA Discussion Papers 3333, Institute for the Study of Labor (IZA).
  9. Jaeger, David A. & Bonin, Holger & Dohmen, Thomas & Falk, Armin & Huffman, David B. & Sunde, Uwe, 2007. "Direct Evidence on Risk Attitudes and Migration," IZA Discussion Papers 2655, Institute for the Study of Labor (IZA).
  10. Bonin, Holger & Constant, Amelie & Tatsiramos, Konstantinos & Zimmermann, Klaus F, 2006. "Native-Migrant Differences in Risk Attitudes," CEPR Discussion Papers 5587, C.E.P.R. Discussion Papers.
  11. 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.
  12. Laibson, David I., 1997. "Golden Eggs and Hyperbolic Discounting," Scholarly Articles 4481499, Harvard University Department of Economics.
  13. Yann Algan & Christian Dustmann & Albrecht Glitz & Alan Manning, 2009. "The Economic Situation of First- and Second-Generation Immigrants in France, Germany and the United Kingdom," CEP Discussion Papers dp0951, Centre for Economic Performance, LSE.
  14. Yona Rubinstein & James J. Heckman, 2001. "The Importance of Noncognitive Skills: Lessons from the GED Testing Program," American Economic Review, American Economic Association, vol. 91(2), pages 145-149, May.
  15. Margaretha Buurman & Josse Delfgaauw & Robert Dur & Seth Van den Bossche, 2012. "Public Sector Employees: Risk Averse and Altruistic?," CESifo Working Paper Series 3851, CESifo Group Munich.
  16. Axel Heitmueller, 2005. "Unemployment benefits, risk aversion, and migration incentives," Journal of Population Economics, Springer, vol. 18(1), pages 93-112, 01.
  17. Dohmen, Thomas J & Falk, Armin & Huffman, David & Sunde, Uwe, 2007. "Are Risk Aversion and Impatience Related to Cognitive Ability?," CEPR Discussion Papers 6398, C.E.P.R. Discussion Papers.
  18. Blau, David M & Robins, Philip K, 1990. "Job Search Outcomes for the Employed and Unemployed," Journal of Political Economy, University of Chicago Press, vol. 98(3), pages 637-55, June.
  19. Ernst Fehr & Simon Gaechter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," CESifo Working Paper Series 336, CESifo Group Munich.
  20. Uhlendorff, Arne & Zimmermann, Klaus F, 2006. "Unemployment Dynamics among Migrants and Natives," CEPR Discussion Papers 5872, C.E.P.R. Discussion Papers.
  21. Constant, Amelie F. & Zimmermann, Klaus F., 2009. "Work and Money: Payoffs by Ethnic Identity and Gender," IZA Discussion Papers 4275, Institute for the Study of Labor (IZA).
  22. McCall, John J, 1970. "Economics of Information and Job Search," The Quarterly Journal of Economics, MIT Press, vol. 84(1), pages 113-26, February.
  23. Borghans, Lex & Duckworth, Angela Lee & Heckman, James J. & Weel, Bas ter, 2008. "The Economics and Psychology of Personality Traits," MERIT Working Papers 010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  24. Holzer, Harry J, 1988. "Search Method Use by Unemployed Youth," Journal of Labor Economics, University of Chicago Press, vol. 6(1), pages 1-20, January.
  25. Edin, Per-Anders & Gustavsson, Magnus, 2005. "Time out of work and skill depreciation," Working Paper Series 2005:21, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  26. Borghans Lex & Lee Duckworth Angela & Heckman James J. & Weel Bas ter, 2008. "The Economics and Psychology of Personality Traits," ROA Research Memorandum 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  27. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2012. "The Intergenerational Transmission of Risk and Trust Attitudes," Review of Economic Studies, Oxford University Press, vol. 79(2), pages 645-677.
  28. Cox, James C. & Orman, Wafa Hakim, 2010. "Immigrant Assimilation, Trust and Social Capital," IZA Discussion Papers 5063, Institute for the Study of Labor (IZA).
  29. Amelie Constant & Liliya Gataullina & Klaus F. Zimmermann, 2008. "Naturalization Proclivities, Ethnicity and Integration," SOEPpapers on Multidisciplinary Panel Data Research 77, DIW Berlin, The German Socio-Economic Panel (SOEP).
  30. Birgitta Rabe, 2011. "Dual-earner migration. Earnings gains, employment and self-selection," Journal of Population Economics, Springer, vol. 24(2), pages 477-497, April.
  31. Blackaby, D.H. & Leslie, D.G. & Murphy, P.D. & O'Leary, N.C., 2005. "Born in Britain: How are native ethnic minorities faring in the British labour market?," Economics Letters, Elsevier, vol. 88(3), pages 370-375, September.
  32. Pissarides, Christopher A, 1974. "Risk, Job Search, and Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1255-67, Nov.-Dec..
  33. Bonin, Holger & Constant, Amelie & Tatsiramos, Konstantinos & Zimmermann, Klaus F, 2007. "Ethnic Persistence, Assimilation and Risk Proclivity," CEPR Discussion Papers 6084, C.E.P.R. Discussion Papers.
  34. Pannenberg, Markus, 2010. "Risk attitudes and reservation wages of unemployed workers: Evidence from panel data," Economics Letters, Elsevier, vol. 106(3), pages 223-226, March.
  35. Caliendo, Marco & Cobb-Clark, Deborah A. & Uhlendorff, Arne, 2010. "Locus of Control and Job Search Strategies," IZA Discussion Papers 4750, Institute for the Study of Labor (IZA).
  36. Stefano DellaVigna & M. Daniele Paserman, 2004. "Job Search and Impatience," NBER Working Papers 10837, National Bureau of Economic Research, Inc.
  37. Matthias Wrede, 2011. "Hyperbolic discounting and fertility," Journal of Population Economics, Springer, vol. 24(3), pages 1053-1070, July.
  38. Paldam, Martin & Svendsen, Gert Tinggaard, 2000. "An essay on social capital: looking for the fire behind the smoke," European Journal of Political Economy, Elsevier, vol. 16(2), pages 339-366, June.
  39. Pissarides, Christopher A, 1992. "Loss of Skill during Unemployment and the Persistence of Employment Shocks," The Quarterly Journal of Economics, MIT Press, vol. 107(4), pages 1371-91, November.
  40. Eichhorst, Werner & Kuhn, Andrea & Thode, Eric & Zenker, Rosemarie, 2010. "Report No. 23: Traditionelle Beschäftigungsverhältnisse im Wandel," IZA Research Reports 23, Institute for the Study of Labor (IZA).
  41. Uysal, Selver Derya & Pohlmeier, Winfried, 2011. "Unemployment duration and personality," Journal of Economic Psychology, Elsevier, vol. 32(6), pages 980-992.
  42. Leo Kaas & Christian Manger, 2012. "Ethnic Discrimination in Germany's Labour Market: A Field Experiment," German Economic Review, Verein für Socialpolitik, vol. 13(1), pages 1-20, 02.
  43. Massey, Douglas S., 2005. "Worlds in Motion: Understanding International Migration at the End of the Millennium," OUP Catalogue, Oxford University Press, number 9780199282760.
  44. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
Full references (including those not matched with items on IDEAS)

Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  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
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

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," CEPR Discussion Papers 8295, C.E.P.R. Discussion Papers.
  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. 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, vol. 36(C), pages 276-294.
  4. 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).
  5. Ulf Rinne & Simone Schüller & Klaus F. Zimmermann, 2010. "Ethnische Vielfalt und Arbeitsmarkterfolg," Discussion Papers of DIW Berlin 1092, DIW Berlin, German Institute for Economic Research.
  6. 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, vol. 32(7), pages 731-752, November.
  7. Giuseppe Albanese & Guido de Blasio & Paolo Sestito, 2013. "Trust and preferences: evidence from survey data," Temi di discussione (Economic working papers) 911, Bank of Italy, Economic Research and International Relations Area.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:diw:diwwpp:dp1088. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.