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Ethnicity, job search and labor market reintegration of the unemployed

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 (October)
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. 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.
  2. 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.
  3. Nekby, Lena & Rödin, Magnus, 2007. "Acculturation Identity and Labor Market Outcomes," SULCIS Working Papers 2007:4, Stockholm University Linnaeus Center for Integration Studies - SULCIS.
  4. Zimmermann, Klaus F., 2007. "Migrant Ethnic Identity: Concept and Policy Implications," IZA Discussion Papers 3056, Institute for the Study of Labor (IZA).
  5. Klaus F. Zimmermann, 2004. "European Labour Mobility: Challenges and Potentials," Discussion Papers of DIW Berlin 460, DIW Berlin, German Institute for Economic Research.
  6. Battu, Harminder & Zenou, Yves, 2009. "Oppositional Identities and Employment for Ethnic Minorities: Evidence from England," IZA Discussion Papers 4517, Institute for the Study of Labor (IZA).
  7. Constant, Amelie F. & Krause, Annabelle & Rinne, Ulf & Zimmermann, Klaus F., 2016. "Reservation wages of first- and second-generation migrants," MERIT Working Papers 050, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  8. 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).
  9. Amelie Constant & Klaus F. Zimmermann, 2007. "Measuring Ethnic Identity and Its Impact on Economic Behavior," Discussion Papers of DIW Berlin 721, DIW Berlin, German Institute for Economic Research.
  10. Klaus Zimmermann, 2007. "The economics of migrant ethnicity," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(3), pages 487-494, July.
  11. Constant, Amelie F. & Gataullina, Liliya & Zimmermann, Klaus F., 2009. "Ethnosizing immigrants," Journal of Economic Behavior & Organization, Elsevier, vol. 69(3), pages 274-287, March.
  12. 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.
  13. 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.
  14. 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.
  15. Bonin, Holger & Dohmen, Thomas & Falk, Armin & Huffman, David & Sunde, Uwe, 2007. "Cross-sectional earnings risk and occupational sorting: The role of risk attitudes," Labour Economics, Elsevier, vol. 14(6), pages 926-937, December.
  16. Marco Caliendo, 2011. "Social networks, job search methods and reservation wages: evidence for Germany," International Journal of Manpower, Emerald Group Publishing, vol. 32(7), pages 796-824, October.
  17. 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).
  18. Thomas Liebig, 2007. "The Labour Market Integration of Immigrants in Germany," OECD Social, Employment and Migration Working Papers 47, OECD Publishing.
  19. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 411-482, July.
  20. Amelie F. Constant & Rowan Roberts & Klaus F. Zimmermann, 2009. "Ethnic Identity and Immigrant Homeownership," Urban Studies, Urban Studies Journal Limited, vol. 46(9), pages 1879-1898, August.
  21. Arne Uhlendorff & Klaus F. Zimmermann, 2006. "Unemployment Dynamics among Migrants and Natives," Discussion Papers of DIW Berlin 617, DIW Berlin, German Institute for Economic Research.
  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 637-655, June.
  23. 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).
  24. 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.
  25. Lancaster, Tony & Chesher, Andrew, 1983. "An Econometric Analysis of Reservation Wages," Econometrica, Econometric Society, vol. 51(6), pages 1661-1676, November.
  26. Martin Kahanec, 2009. "Labor market outcomes of immigrants and non-citizens in the EU," International Journal of Manpower, Emerald Group Publishing, vol. 30(1/2), pages 97-115, May.
  27. Amelie Constant & Klaus F. Zimmermann, 2009. "Migration, Ethnicity and Economic Integration," Discussion Papers of DIW Berlin 957, DIW Berlin, German Institute for Economic Research.
  28. Constant, Amelie F. & Zimmermann, Klaus F., 2009. "Work and Money: Payoffs by Ethnic Identity and Gender," IZA Discussion Papers 4275, Institute for the Study of Labor (IZA).
  29. Amelie F. Constant, 2011. "Economic preferences and attitudes of the unemployed," International Journal of Manpower, Emerald Group Publishing, vol. 32(7), pages 825-851, October.
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