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Seeking similarity: how immigrants and natives manage at the labor market

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Author Info

  • Åslund, Olof

    ()
    (IFAU - Institute for Labour Market Policy Evaluation)

  • Hensvik, Lena

    ()
    (IFAU - Institute for Labour Market Policy Evaluation)

  • Nordström Skans, Oskar

    ()
    (IFAU - Institute for Labour Market Policy Evaluation)

Abstract

We show that immigrant managers are substantially more likely to hire immigrants than are native managers. The finding holds when comparing establishments in the same 5-digit industry and location, when comparing different establishments within the same firm, when analyzing establishments that change management over time, and when accounting for within-establishment trends in recruitment patterns. The effects are largest for small and owner managed establishments in the for-profit sector. Separations are more frequent when workers and managers have dissimilar origin, but only before workers become protected by EPL. We also find that native managers are unbiased in their recruitments of former co-workers, suggesting that information deficiencies are important. We find no effects on entry wages. Our findings suggest that a low frequency of immigrant managers may contribute to the observed disadvantages of immigrant workers.

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Bibliographic Info

Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2009:24.

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Length: 42 pages
Date of creation: 07 Dec 2009
Date of revision:
Handle: RePEc:hhs:ifauwp:2009_024

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Keywords: Minority workers; Labor mobility; Workplace segregation;

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References

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  1. Christian Dustmann & Albrecht Glitz & Uta Schönberg, 2011. "Referral-based Job Search Networks," CReAM Discussion Paper Series 1114, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. Judith Hellerstein & David Neumark, 2004. "Workplace Segregation in the United States: Race, Ethnicity, and Skill," PPIC Working Papers 2004.05, Public Policy Institute of California.
  3. Judith K. HELLERSTEIN & Melissa MC INERNEY & David NEUMARK, 2010. "Spatial Mismatch, Immigrant Networks, and Hispanic Employment in the United States," Annales d'Economie et de Statistique, ENSAE, issue 99-100, pages 141-167.
  4. Bandiera, Oriana & Barankay, Iwan & Rasul, Imran, 2009. "Social Connections and Incentives in the Workplace: Evidence from Personnel Data," CEPR Discussion Papers 7114, C.E.P.R. Discussion Papers.
  5. Åslund, Olof & Nordström Skans, Oskar, 2007. "Do anonymous job application procedures level the playing field?," Working Paper Series 2007:31, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  6. Sergio Currarini & Paolo Pin & Matthew O. Jackson, 2007. "An Economic Model of Friendship: Homophily, Minorities and Segregation," Working Papers 2007_20, Department of Economics, University of Venice "Ca' Foscari".
  7. Judith K. Hellerstein & Melissa McInerney & David Neumark, 2011. "Neighbors and Coworkers: The Importance of Residential Labor Market Networks," Journal of Labor Economics, University of Chicago Press, vol. 29(4), pages 659 - 695.
  8. Haefke, Christian & Sonntag, Marcus & van Rens, Thijs, 2008. "Wage Rigidity and Job Creation," IZA Discussion Papers 3714, Institute for the Study of Labor (IZA).
  9. Kaivan Munshi, 2003. "Networks In The Modern Economy: Mexican Migrants In The U.S. Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(2), pages 549-599, May.
  10. Olof Aslund & Oskar Nordström Skans, 2010. "Will I See You at Work? Ethnic Workplace Segregation in Sweden, 1985-2002," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 63(3), pages 471-493, April.
  11. Judith K. Hellerstein & David Neumark & Melissa McInerney, 2007. "Spatial Mismatch or Racial Mismatch?," NBER Working Papers 13161, National Bureau of Economic Research, Inc.
  12. Ahmed, Ali M., 2007. "Group identity, social distance and intergroup bias," Journal of Economic Psychology, Elsevier, vol. 28(3), pages 324-337, June.
  13. Nordström Skans, Oskar & Edin, Per-Anders & Holmlund, Bertil, 2006. "Wage Dispersion Between and Within Plants: Sweden 1985-2000," Working Paper Series 2006:18, Uppsala University, Department of Economics.
  14. Giorgio Topa & Stephen Ross & Patrick Bayer, 2005. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," Working Papers 05-23, Center for Economic Studies, U.S. Census Bureau.
  15. Edin, Per-Anders & Fredriksson, Peter, 2000. "LINDA - Longitudinal INdividual DAta for Sweden," Working Paper Series 2000:19, Uppsala University, Department of Economics.
  16. Michael A. Stoll & Steven Raphael & Harry J. Holzer, 2004. "Black job applicants and the hiring officer's race," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 57(2), pages 267-287, January.
  17. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December.
  18. Edward P. Lazear & Kathryn L. Shaw, 2009. "The Structure of Wages: An International Comparison," NBER Books, National Bureau of Economic Research, Inc, number laze08-1, October.
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Citations

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Cited by:
  1. Christian Dustmann & Albrecht Glitz & Uta Schönberg, 2011. "Referral-based Job Search Networks," CReAM Discussion Paper Series 1114, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. Hensvik, Lena, 2011. "Manager impartiality? Worker-firm matching and the gender wage gap," Working Paper Series 2011:22, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  3. Albrecht Glitz, 2012. "Ethnic Segregation in Germany," CReAM Discussion Paper Series 1222, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  4. Kramarz, Francis & Nordström Skans, Oskar, 2011. "When strong ties are strong Networks and youth labor market entry," Working Paper Series, Center for Labor Studies 2011:18, Uppsala University, Department of Economics.
  5. Gustafsson, Björn Anders, 2011. "Disparities in Social Assistance Receipt between Immigrants and Natives in Sweden," IZA Discussion Papers 6129, Institute for the Study of Labor (IZA).
  6. Hensvik, Lena & Nordström Skans, Oskar, 2013. "Social networks, employee selection and labor market outcomes," Working Paper Series 2013:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  7. Nicodemo, Catia & Nicolini, Rosella, 2012. "Random or Referral Hiring: When Social Connections Matter," IZA Discussion Papers 6312, Institute for the Study of Labor (IZA).
  8. Giuliano, Laura & Ransom, Michael R., 2011. "Manager Ethnicity and Employment Segregation," IZA Discussion Papers 5437, Institute for the Study of Labor (IZA).
  9. Hellerstein, Judith K. & Kutzbach, Mark J. & Neumark, David, 2014. "Do labor market networks have an important spatial dimension?," Journal of Urban Economics, Elsevier, vol. 79(C), pages 39-58.

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