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

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  • 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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  1. 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, octubre-d.
  2. 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.
  3. 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.
  4. Åslund, Olof & Nordström Skans, Oskar, 2005. "Will I see you at work? Ethnic workplace segregation in Sweden 1985–2002," Working Paper Series 2005:24, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  5. Christian Haefke & Marcus Sonntag & Thijs van Rens, 2009. "Wage Rigidity and Job Creation," Kiel Working Papers 1504, Kiel Institute for the World Economy.
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  8. Judith K. Hellerstein & Melissa McInerney & David Neumark, 2009. "Spatial Mismatch, Immigrant Networks, and Hispanic Employment in the United States," NBER Working Papers 15398, National Bureau of Economic Research, Inc.
  9. 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.
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Citations

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Cited by:
  1. Laura Giuliano & Michael R. Ransom, 2013. "Manager Ethnicity and Employment Segregation," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 66(2), pages 346-379, April.
  2. 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.
  3. Judith K. Hellerstein & Mark J. Kutzbach & David Neumark, 2013. "Do Labor Market Networks Have An Important Spatial Dimension?," NBER Working Papers 18763, National Bureau of Economic Research, Inc.
  4. Christian Dustmann & Albrecht Glitz & Uta Schoenberg, 2011. "Referral-based Job Search Networks," Norface Discussion Paper Series 2011012, Norface Research Programme on Migration, Department of Economics, University College London.
  5. Nordström Skans, Oskar & Kramarz, Francis, 2011. "When strong ties are strong – networks and youth labor market entry," Working Paper Series 2011:18, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  6. 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.
  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. 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.
  9. 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).

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