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Workplace segregation and the labour market performance of immigrants

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  • Willis, Sébastien

Abstract

This paper studies the effect of conational coworkers in an immigrant’s first job on subsequent labour market outcomes using German register data. I instrument for the conational share using idiosyncratic variation in firm hiring in the local labour market where the immigrant searches for work. A ten percentage point increase in the initial conational share lowers employment by around 3 percentage points in the long-run. Survey evidence suggests that a higher conational share leads to higher self-employment and unemployment, rather than re-migration. Furthermore, both differential host country-specific human capital accumulation and changes in job search outcomes contribute to the employment effect.

Suggested Citation

  • Willis, Sébastien, 2025. "Workplace segregation and the labour market performance of immigrants," Labour Economics, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:labeco:v:93:y:2025:i:c:s0927537124001489
    DOI: 10.1016/j.labeco.2024.102652
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    More about this item

    Keywords

    Employment; Segregation; Coworker networks; Immigrant earnings dynamics;
    All these keywords.

    JEL classification:

    • 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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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