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

Author

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  • Constant, Amelie F.

    (Temple University)

  • Krause-Pilatus, Annabelle

    (IZA)

  • Rinne, Ulf

    (IZA)

  • Zimmermann, Klaus F.

    (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.

Suggested Citation

  • Constant, Amelie F. & Krause-Pilatus, Annabelle & Rinne, Ulf & Zimmermann, Klaus F., 2010. "Economic Preferences and Attitudes of the Unemployed: Are Natives and Second Generation Migrants Alike?," IZA Discussion Papers 5380, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp5380
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    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 19:27:22

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    3. 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 Limited, vol. 32(7), pages 731-752, October.
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    15. Klöble, Katrin, 2021. "A behavioural perspective on the drivers of migration: Studying economic and social preferences using the Gallup World Poll," IDOS Discussion Papers 4/2021, German Institute of Development and Sustainability (IDOS).
    16. Zhan, Crystal & Deole, Sumit, 2022. "Economic Preferences and the Self-selection of Immigrants," GLO Discussion Paper Series 1156, Global Labor Organization (GLO).
    17. Giuseppe Albanese & Guido de Blasio & Paolo Sestito, 2017. "Trust, risk and time preferences: evidence from survey data," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 64(4), pages 367-388, December.
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    22. Constant, Amelie F. & Tien, Bienvenue N., 2011. "Germany's Immigration Policy and Labor Shortages," IZA Research Reports 41, Institute of Labor Economics (IZA).
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    More about this item

    Keywords

    migration; time preferences; trust; unemployment; risk attitudes; personality traits; reciprocity;
    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
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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