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

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Author Info

  • Constant, Amelie F.

    ()
    (George Washington University, Temple University)

  • Krause, Annabelle

    ()
    (IZA)

  • Rinne, Ulf

    ()
    (IZA)

  • Zimmermann, Klaus F.

    ()
    (IZA and University of Bonn)

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.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5380.

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Length: 30 pages
Date of creation: Dec 2010
Date of revision:
Publication status: published in: International Journal of Manpower, 2011, 32 (7), 825-851
Handle: RePEc:iza:izadps:dp5380

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Related research

Keywords: migration; time preferences; trust; unemployment; risk attitudes; personality traits; reciprocity;

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References

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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
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Cited by:
  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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).

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