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Work and Money: Payoffs by Ethnic Identity and Gender

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  • Amelie Constant
  • Klaus F. Zimmermann

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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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.100081.de/dp908.pdf
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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 908.

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Length: 31 p.
Date of creation: 2009
Date of revision:
Handle: RePEc:diw:diwwpp:dp908

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

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References

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  1. Battu, Harminder & Mwale, McDonald & Zenou, Yves, 2005. "Oppositional Identities and the Labor Market," Working Paper Series 649, Research Institute of Industrial Economics.
  2. 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.
  3. 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.
  4. Amelie Constant & Klaus F. Zimmermann, 2007. "Measuring Ethnic Identity and Its Impact on Economic Behavior," Discussion Papers of DIW Berlin 721, DIW Berlin, German Institute for Economic Research.
  5. Constant, Amelie & Gataullina, Liliya & Zimmermann, Klaus F & Zimmermann, Laura, 2006. "Clash of Cultures: Muslims and Christians in the Ethnosizing Process," CEPR Discussion Papers 5910, C.E.P.R. Discussion Papers.
  6. Constant, Amelie & Gataullina, Liliya & Zimmermann, Klaus F, 2006. "Ethnosizing Immigrants," CEPR Discussion Papers 5636, C.E.P.R. Discussion Papers.
  7. Bisin, Alberto & Patacchini, Eleonora & Verdier, Thierry & Zenou, Yves, 2007. "Are Muslim Immigrants Different in Terms of Cultural Integration?," CEPR Discussion Papers 6453, C.E.P.R. Discussion Papers.
  8. Carmel Chiswick, 2009. "The economic determinants of ethnic assimilation," Journal of Population Economics, Springer, vol. 22(4), pages 859-880, October.
  9. Mason, Patrick L., 2004. "Annual income, hourly wages, and identity Among Mexican Americans and other Latinos," MPRA Paper 11326, University Library of Munich, Germany.
  10. Klaus F. Zimmermann, 2007. "Migrant Ethnic Identity: Concept And Policy Implications," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 10(1), pages 1-17, Summer.
  11. 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.
  12. 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.
  13. 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.
  14. Gianmarco I.P. Ottaviano & Giovanni Peri, 2004. "The Economic Value of Cultural Diversity: Evidence from US Cities," CESifo Working Paper Series 1117, CESifo Group Munich.
  15. 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.
  16. 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.
  17. Klaus Zimmermann, 2007. "The economics of migrant ethnicity," Journal of Population Economics, Springer, vol. 20(3), pages 487-494, July.
  18. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
  19. 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.
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Citations

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Cited by:
  1. Constant, Amelie & Krause, Annabelle & Rinne, Ulf & Zimmermann, Klaus F, 2011. "Reservation Wages of First and Second Generation Migrants," CEPR Discussion Papers 8208, C.E.P.R. Discussion Papers.
  2. 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).
  3. Constant, Amelie F. & Zimmermann, Klaus F., 2009. "Migration, Ethnicity and Economic Integration," IZA Discussion Papers 4620, Institute for the Study of Labor (IZA).
  4. Schüller, Simone, 2011. "Parental Ethnic Identity and Educational Attainment of Second-Generation Immigrants," IZA Discussion Papers 6155, Institute for the Study of Labor (IZA).
  5. 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).
  6. 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).
  7. 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.
  8. Drydakis, Nick, 2012. "The Effect of Ethnic Identity on the Employment of Immigrants," IZA Discussion Papers 6314, Institute for the Study of Labor (IZA).
  9. Constant, Amelie & Krause, Annabelle & Rinne, Ulf & Zimmermann, Klaus F, 2011. "Economic Preferences and Attitudes of the Unemployed: Are Natives and Second Generation Migrants Alike?," CEPR Discussion Papers 8207, C.E.P.R. Discussion Papers.
  10. 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.

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