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Ethnic Identity and Immigrants' Labour Market Outcomes

Author

Listed:
  • Piracha, Matloob

    (University of Kent)

  • Tani, Massimiliano

    (University of New South Wales)

  • Cheng, Zhiming

    (University of New South Wales)

  • Wang, Ben Zhe

    (Macquarie University, Sydney)

Abstract

The objective of this paper is to analyse how immigrants' ethnic identity correlates with their labour market outcomes. More precisely, we estimate the role of ethnic identity in employment, wages, under-employment (i.e., they would prefer to work more hours but are not given the opportunity), three measures of job satisfaction, overeducation and wages. We further explore whether economic downturn has a differentiated impact on these measures. Using Australian longitudinal data, we find that ethnic identity is strongly associated with employment and wages as well a number of job satisfaction measures. We then split our data and repeat the estimations for before and after the Great Financial Crisis of 2008-09. We find important differences in the way ethnic identity is associated with different measures of labour market outcomes under different economic conditions. Finally, we explore the mechanisms through which some of results could be explained.

Suggested Citation

  • Piracha, Matloob & Tani, Massimiliano & Cheng, Zhiming & Wang, Ben Zhe, 2021. "Ethnic Identity and Immigrants' Labour Market Outcomes," IZA Discussion Papers 14123, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14123
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    References listed on IDEAS

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    Cited by:

    1. Prömel, Christopher, 2021. "Belonging or estrangement: The European refugee crisis and its effects on immigrant identity," Discussion Papers 2021/16, Free University Berlin, School of Business & Economics.
    2. Christopher Prömel, 2022. "Belonging or Estrangement – The European Refugee Crisis and its Effects on Immigrant Identity," SOEPpapers on Multidisciplinary Panel Data Research 1160, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Cheng, Zhiming & Smyth, Russell, 2021. "Education and migrant entrepreneurship in urban China," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 506-529.
    4. Prömel, Christopher, 2023. "Belonging or estrangement—The European Refugee Crisis and its effects on immigrant identity," European Journal of Political Economy, Elsevier, vol. 78(C).

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    More about this item

    Keywords

    overeducation; job quality; ethnic identity; assimilation; employment; wages;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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