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Ethnicity, job search and labor market reintegration of the unemployed

  • Amelie F. Constant
  • Martin Kahanec
  • Ulf Rinne
  • Klaus F. Zimmermann

Purpose – This paper seeks to shed further light on the native-migrant differences in economic outcomes. The aim is to investigate labor market reintegration, patterns of job search, and reservation wages across unemployed migrants and natives in Germany. Design/methodology/approach – The paper is based on the IZA Evaluation Dataset, a recently collected rich survey of a representative sample of entrants into unemployment in Germany. The data include a large number of migration variables, allowing us to adapt a recently developed concept of ethnic identity: the ethnosizer. The authors analyze these data using the OLS technique as well as probabilistic regression models. Findings – The results indicate that separated migrants have a relatively slow reintegration into the labor market. It can be argued that this group exerts a relatively low search effort and that it has reservation wages which are moderate, yet still above the level which would imply similar employment probabilities as other groups of migrants. Research limitations/implications – The findings indicate that special attention needs to be paid by policy makers to various forms of social and cultural integration, as it has significant repercussions on matching in the labor market. Originality/value – The paper identifies a previously unmapped relationship between ethnic identity and labor market outcomes.

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Article provided by Emerald Group Publishing in its journal International Journal of Manpower.

Volume (Year): 32 (2011)
Issue (Month): 7 (November)
Pages: 753-776

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Handle: RePEc:eme:ijmpps:v:32:y:2011:i:7:p:753-776
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  1. Marco Caliendo & Ricarda Schmidl & Arne Uhlendorff, 2010. "Social Networks, Job Search Methods and Reservation Wages: Evidence for Germany," Discussion Papers of DIW Berlin 1055, DIW Berlin, German Institute for Economic Research.
  2. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," NBER Working Papers 12006, National Bureau of Economic Research, Inc.
  3. Amelie F. Constant & Annabelle Krause & Ulf Rinne & Klaus F. Zimmermann, 2010. "Economic Preferences and Attitudes of the Unemployed: Are Natives and Second Generation Migrants Alike?," Discussion Papers of DIW Berlin 1088, DIW Berlin, German Institute for Economic Research.
  4. Lex Borghans & Angela Lee Duckworth & James J. Heckman & Bas ter Weel, 2008. "The Economics and Psychology of Personality Traits," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
  5. Muhleisen, Martin & Zimmermann, Klaus F., 1994. "A panel analysis of job changes and unemployment," European Economic Review, Elsevier, vol. 38(3-4), pages 793-801, April.
  6. Uhlendorff, Arne & Zimmermann, Klaus F., 2006. "Unemployment Dynamics among Migrants and Natives," IZA Discussion Papers 2299, Institute for the Study of Labor (IZA).
  7. Lancaster, Tony & Chesher, Andrew, 1983. "An Econometric Analysis of Reservation Wages," Econometrica, Econometric Society, vol. 51(6), pages 1661-76, November.
  8. Amelie Constant & Klaus F. Zimmermann, 2009. "Work and Money: Payoffs by Ethnic Identity and Gender," Discussion Papers of DIW Berlin 908, DIW Berlin, German Institute for Economic Research.
  9. Constant, Amelie & Gataullina, Liliya & Zimmermann, Klaus F, 2006. "Ethnosizing Immigrants," CEPR Discussion Papers 5636, C.E.P.R. Discussion Papers.
  10. Darity, William Jr. & Mason, Patrick L. & Stewart, James B., 2006. "The economics of identity: The origin and persistence of racial identity norms," Journal of Economic Behavior & Organization, Elsevier, vol. 60(3), pages 283-305, July.
  11. Constant, Amelie & Krause, Annabelle & Rinne, Ulf & Zimmermann, Klaus F, 2011. "Reservation Wages of First and Second Generation Migrants," CEPR Discussion Papers 8208, C.E.P.R. Discussion Papers.
  12. Amelie F. Constant & Klaus F. Zimmermann, 2011. "Migration, Ethnicity and Economic Integration," Chapters, in: International Handbook on the Economics of Integration, Volume III, chapter 7 Edward Elgar.
  13. Constant, Amelie & Roberts, Rowan & Zimmermann, Klaus F, 2007. "Ethnic Identity and Immigrant Homeownership," CEPR Discussion Papers 6490, C.E.P.R. Discussion Papers.
  14. Caliendo, Marco & Falk, Armin & Kaiser, Lutz C. & Schneider, Hilmar & Uhlendorff, Arne & van den Berg, Gerard J. & Zimmermann, Klaus F., 2010. "The IZA Evaluation Dataset: Towards Evidence-Based Labor Policy-Making," IZA Discussion Papers 5400, Institute for the Study of Labor (IZA).
  15. Brügger, Beatrix & Lalive, Rafael & Zweimüller, Josef, 2009. "Does Culture Affect Unemployment? Evidence from the Röstigraben," IZA Discussion Papers 4283, Institute for the Study of Labor (IZA).
  16. Harminder Battu & Yves Zenou, 2010. "Oppositional Identities and Employment for Ethnic Minorities: Evidence from England," Economic Journal, Royal Economic Society, vol. 120(542), pages F52-F71, 02.
  17. George A. Akerlof & Rachel E. Kranton, 2002. "Identity and Schooling: Some Lessons for the Economics of Education," Journal of Economic Literature, American Economic Association, vol. 40(4), pages 1167-1201, December.
  18. Klaus Zimmermann, 2005. "European Labour Mobility: Challenges and Potentials," De Economist, Springer, vol. 153(4), pages 425-450, December.
  19. Holzer, Harry J, 1988. "Search Method Use by Unemployed Youth," Journal of Labor Economics, University of Chicago Press, vol. 6(1), pages 1-20, January.
  20. Nekby, Lena & Rödin, Magnus, 2010. "Acculturation identity and employment among second and middle generation immigrants," Journal of Economic Psychology, Elsevier, vol. 31(1), pages 35-50, February.
  21. Amelie F. Constant & Klaus F. Zimmermann, 2008. "Measuring Ethnic Identity and its Impact on Economic Behavior," Journal of the European Economic Association, MIT Press, vol. 6(2-3), pages 424-433, 04-05.
  22. Blau, David M & Robins, Philip K, 1990. "Job Search Outcomes for the Employed and Unemployed," Journal of Political Economy, University of Chicago Press, vol. 98(3), pages 637-55, June.
  23. Nekby, Lena & Rödin, Magnus, 2007. "Acculturation Identity and Labor Market Outcomes," Research Papers in Economics 2007:7, Stockholm University, Department of Economics.
  24. Bonin, Holger & Dohmen, Thomas J. & Falk, Armin & Huffman, David & Sunde, Uwe, 2007. "Cross-sectional earnings risk and occupational sorting: The role of risk attitudes," Munich Reprints in Economics 20204, University of Munich, Department of Economics.
  25. Klaus Zimmermann, 2007. "The economics of migrant ethnicity," Journal of Population Economics, Springer, vol. 20(3), pages 487-494, July.
  26. Thomas Liebig, 2007. "The Labour Market Integration of Immigrants in Germany," OECD Social, Employment and Migration Working Papers 47, OECD Publishing.
  27. Klaus F. Zimmermann, 2007. "Migrant Ethnic Identity: Concept And Policy Implications," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 10(1), pages 1-17, Summer.
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