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Labor market outcomes of immigrants and non-citizens in the EU: An East-West comparison

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  • Martin Kahanec
  • Anzelika Zaiceva

Abstract

Purpose - The purpose of this paper is to comparatively analyse the roles of foreign origin and citizenship in the labor markets of Eastern and Eestern Member States of the EU. Design/methodology/approach - The EU Survey of Income and Living Conditions is used to evaluate the roles of foreign origin and citizenship on employment and earnings using the standard Probit and OLS econometric models. The native/non-native labor market divide is measured using Fairlie and Oaxaca-Blinder decomposition techniques. Findings - The results indicate that, while predominantly foreign origin is of key importance in the Western EU Member States, both foreign origin and citizenship matter in the Eastern EU Member States, their roles depending on gender. Moreover, the evidence suggests that the effects of citizenship in the EU8 may be driven by the (predominantly ethnic Russian) non-citizens in Estonia and Latvia. Research limitations/implications - Further analysis is necessary to evaluate the observed associations as causal relationships. Originality/value - The study is the first to shed light on the role of foreign origin and citizenship in the EU8 and the EU15 in the comparative East-West perspective. The findings have noteworthy implications for the targeting of national as well as EU-wide integration policies.

Suggested Citation

  • Martin Kahanec & Anzelika Zaiceva, 2009. "Labor market outcomes of immigrants and non-citizens in the EU: An East-West comparison," International Journal of Manpower, Emerald Group Publishing, vol. 30(1/2), pages 97-115, March.
  • Handle: RePEc:eme:ijmpps:v:30:y:2009:i:1/2:p:97-115
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    References listed on IDEAS

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    1. DeVoretz, Don J., 2006. "The Economics of Citizenship: A Common Intellectual Ground for Social Scientists?," IZA Discussion Papers 2392, Institute for the Study of Labor (IZA).
    2. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
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    5. Kristjan-Olari Leping & Ott Toomet, 2007. "Ethnic Wage Gap And Political Break-Ups: Estonia During Political And Economic Transition," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 53, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    6. Bernt Bratsberg & James F. Ragan & Zafar M. Nasir, 2002. "The Effect of Naturalization on Wage Growth: A Panel Study of Young Male Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 568-597, July.
    7. Amelie F. Constant & Martin Kahanec & Klaus F. Zimmermann, 2012. "The Russian–Ukrainian earnings divide," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 20(1), pages 1-35, January.
    8. Martin Kahanec & Mariapia Mendola, 2007. "Social Determinants of Labor Market Status of Ethnic Minorities in Britain," Working Papers 125, University of Milano-Bicocca, Department of Economics, revised Nov 2007.
    9. Amelie F. Constant & Martin Kahanec & Klaus F. Zimmermann, 2011. "The Russian-Ukrainian Political Divide," Eastern European Economics, Taylor & Francis Journals, vol. 49(6), pages 97-109, November.
    10. Catalina Amuedo-Dorantes & Sara de la Rica, 2007. "Labour Market Assimilation of Recent Immigrants in Spain," British Journal of Industrial Relations, London School of Economics, vol. 45(2), pages 257-284, June.
    11. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    12. Alicia Adsera & Barry Chiswick, 2007. "Are there gender and country of origin differences in immigrant labor market outcomes across European destinations?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(3), pages 495-526, July.
    13. Zimmermann, Klaus F. (ed.), 2005. "European Migration: What Do We Know?," OUP Catalogue, Oxford University Press, number 9780199257355.
    14. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
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    Citations

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    Cited by:

    1. Rinne, Ulf & Schüller, Simone & Zimmermann, Klaus F., 2010. "Ethnische Vielfalt und Arbeitsmarkterfolg," IZA Standpunkte 34, Institute for the Study of Labor (IZA).
    2. Amelie F. Constant & Martin Kahanec & Ulf Rinne & Klaus F. Zimmermann, 2011. "Ethnicity, job search and labor market reintegration of the unemployed," International Journal of Manpower, Emerald Group Publishing, vol. 32(7), pages 753-776, October.
    3. Leping, Kristian-Olari & Toomet, Ott, 2008. "Emerging ethnic wage gap: Estonia during political and economic transition," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 599-619, December.
    4. Guzi, Martin & Kahanec, Martin & Kureková, Lucia Mýtna, 2015. "What Explains Immigrant-Native Gaps in European Labor Markets: The Role of Institutions," IZA Discussion Papers 8847, Institute for the Study of Labor (IZA).
    5. Hazans, Mihails & Philips, Kaia, 2011. "The Post-Enlargement Migration Experience in the Baltic Labor Markets," IZA Discussion Papers 5878, Institute for the Study of Labor (IZA).
    6. Amelie F. Constant & Annabelle Krause & Ulf Rinne & Klaus F. Zimmermann, 2011. "Economic preferences and attitudes of the unemployed: Are natives and second generation migrants alike?," International Journal of Manpower, Emerald Group Publishing, vol. 32(7), pages 825-851, October.
    7. Martin Kahanec, 2018. "How Immigrants Helped EU Labor Markets to Adjust during the Great Recession," Discussion Papers 48, Central European Labour Studies Institute (CELSI).
    8. Fang, Tony & Samnani, Al-Karim & Novicevic, Milorad M. & Bing, Mark N., 2013. "Liability-of-foreignness effects on job success of immigrant job seekers," Journal of World Business, Elsevier, vol. 48(1), pages 98-109.
    9. Kahanec, Martin, 2012. "Report No. 49: Skilled Labor Flows: Lessons from the European Union," IZA Research Reports 49, Institute for the Study of Labor (IZA).
    10. Guzi, Martin & Kahanec, Martin & Kureková, Lucia Mýtna, 2015. "How Immigration Grease Is Affected by Economic, Institutional and Policy Contexts: Evidence from EU Labor Markets," IZA Discussion Papers 9108, Institute for the Study of Labor (IZA).
    11. Hazans, Mihails, 2011. "What Explains Prevalence of Informal Employment in European Countries: The Role of Labor Institutions, Governance, Immigrants, and Growth," IZA Discussion Papers 5872, Institute for the Study of Labor (IZA).
    12. Martin Kahanec & Anzelika Zaiceva & Klaus F. Zimmermann, 2011. "Ethnic Minorities in the European Union: An Overview," Chapters,in: Ethnic Diversity in European Labor Markets, chapter 1 Edward Elgar Publishing.
    13. Gligorov, Vladimir, 2009. "Mobility and Transition in Integrating Europe," MPRA Paper 19198, University Library of Munich, Germany.
    14. Zimmermann, Klaus F. & Kahanec, Martin & Giulietti, Corrado & Guzi, Martin & Barrett, Alan & Maitre, Bertrand, 2012. "Report No. 43: Study on Active Inclusion of Migrants," IZA Research Reports 43, Institute for the Study of Labor (IZA).
    15. Marco Marozzi, 2016. "Construction, Robustness Assessment and Application of an Index of Perceived Level of Socio-Economic Threat from Immigrants: A Study of 47 European Countries and Regions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(1), pages 413-437, August.
    16. Hamori, Szilvia, 2009. "Employment convergence of immigrants in the EU: Differences across genders, regions of origin and destination," HWWI Research Papers 3-20, Hamburg Institute of International Economics (HWWI).
    17. Kahanec, Martin & Guzi, Martin, 2016. "How Immigrants Helped EU Labor Markets to Adjust during the Great Recession," IZA Discussion Papers 10443, Institute for the Study of Labor (IZA).
    18. Mihails Hazans, 2011. "Labor Market Integration of Ethnic Minorities in Latvia," Chapters,in: Ethnic Diversity in European Labor Markets, chapter 8 Edward Elgar Publishing.
    19. Hazans, Mihails, 2011. "Informal Workers across Europe: Evidence from 30 Countries," IZA Discussion Papers 5871, Institute for the Study of Labor (IZA).
    20. Rovelli, Riccardo & Zaiceva, Anzelika, 2009. "Transition Fatigue? Cross-Country Evidence from Micro Data," IZA Discussion Papers 4224, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Immigrants; Citizenship; Earnings; Employment; Labour market; Eastern Europe;

    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
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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