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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 (December)
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. 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.
  2. 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.
  3. Constant, Amelie F. & Zimmermann, Klaus F., 2007. "Measuring Ethnic Identity and Its Impact on Economic Behavior," IZA Discussion Papers 3063, Institute for the Study of Labor (IZA).
  4. Caliendo, Marco & Schmidl, Ricarda & Uhlendorff, Arne, 2010. "Social Networks, Job Search Methods and Reservation Wages: Evidence for Germany," IZA Discussion Papers 5165, Institute for the Study of Labor (IZA).
  5. Uhlendorff, Arne & Zimmermann, Klaus F, 2006. "Unemployment Dynamics among Migrants and Natives," CEPR Discussion Papers 5872, C.E.P.R. Discussion Papers.
  6. Constant, Amelie & Gataullina, Liliya & Zimmermann, Klaus F, 2006. "Ethnosizing Immigrants," CEPR Discussion Papers 5636, C.E.P.R. Discussion Papers.
  7. Constant, Amelie F. & Krause, Annabelle & Rinne, Ulf & Zimmermann, Klaus F., 2010. "Reservation Wages of First and Second Generation Migrants," IZA Discussion Papers 5396, Institute for the Study of Labor (IZA).
  8. Borghans, Lex & Duckworth, Angela Lee & Heckman, James J. & Weel, Bas ter, 2008. "The Economics and Psychology of Personality Traits," MERIT Working Papers 010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  9. 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.
  10. 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 Publishing.
  11. 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.
  12. 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.
  13. 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).
  14. 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.
  15. 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.
  16. Zimmermann, Klaus F., 2004. "European Labour Mobility: Challenges and Potentials," IZA Discussion Papers 1410, Institute for the Study of Labor (IZA).
  17. Amelie Constant & Rowan Roberts & Klaus F. Zimmermann, 2007. "Ethnic Identity and Immigrant Homeownership," Discussion Papers of DIW Berlin 726, DIW Berlin, German Institute for Economic Research.
  18. Constant, Amelie F. & Krause, 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 for the Study of Labor (IZA).
  19. Harminder Battu & Yves Zenou, 2009. "Oppositional Identities and Employment for Ethnic Minorities. Evidence from England," CReAM Discussion Paper Series 0924, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  20. Nekby, Lena & Rödin, Magnus, 2007. "Acculturation Identity and Labor Market Outcomes," IZA Discussion Papers 2826, Institute for the Study of Labor (IZA).
  21. 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.
  22. 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.
  23. 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).
  24. Lancaster, Tony & Chesher, Andrew, 1983. "An Econometric Analysis of Reservation Wages," Econometrica, Econometric Society, vol. 51(6), pages 1661-76, November.
  25. Thomas Liebig, 2007. "The Labour Market Integration of Immigrants in Germany," OECD Social, Employment and Migration Working Papers 47, OECD Publishing.
  26. Marco Caliendo, 2011. "The IZA Evaluation Dataset: towards evidence-based labor policy making," International Journal of Manpower, Emerald Group Publishing, vol. 32(7), pages 731-752, December.
  27. 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.
  28. Amelie F. Constant, 2011. "Economic preferences and attitudes of the unemployed," International Journal of Manpower, Emerald Group Publishing, vol. 32(7), pages 825-851, December.
  29. 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.
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