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Editor's Choice Cyclical Unemployment Fluctuations of Immigrants and Natives: Evidence from Austria

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  • Nora Prean
  • Karin Mayr

Abstract

We analyze differences in unemployment between immigrants and natives over the business cycle, using a comprehensive matched employer–employee data set for Austria. We find that the unemployment rate of immigrants from outside the European Economic Area and their individual transition rates into unemployment are significantly more volatile over the cycle than those of natives. We test for existing theories according to which a greater variability in employment can be due to a selection of workers into specific industries, firms, or temporary jobs. We find no evidence for the differential unemployment response of immigrant workers in our sample to be driven by such selection.

Suggested Citation

  • Nora Prean & Karin Mayr, 2016. "Editor's Choice Cyclical Unemployment Fluctuations of Immigrants and Natives: Evidence from Austria," CESifo Economic Studies, CESifo, vol. 62(1), pages 1-25.
  • Handle: RePEc:oup:cesifo:v:62:y:2016:i:1:p:1-25.
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    File URL: http://hdl.handle.net/10.1093/cesifo/ifv013
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    References listed on IDEAS

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    1. Martin S. Feldstein, 1975. "The Importance of Temporary Layoffs: An Empirical Analysis," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 6(3), pages 725-745.
    2. Robert Shimer, 2005. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies," American Economic Review, American Economic Association, vol. 95(1), pages 25-49, March.
    3. Robert E. Hall, 2005. "Employment Fluctuations with Equilibrium Wage Stickiness," American Economic Review, American Economic Association, vol. 95(1), pages 50-65, March.
    4. Cain, Glen G, 1976. "The Challenge of Segmented Labor Market Theories to Orthodox Theory: A Survey," Journal of Economic Literature, American Economic Association, vol. 14(4), pages 1215-1257, December.
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    Cited by:

    1. Hart, Janine & Clemens, Marius, 2019. "A search and matching approach to business-cycle migration in the euro area," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203659, Verein für Socialpolitik / German Economic Association.
    2. Kadri Azra & Bobek Vito & Horvat Tatjana, 2021. "The European Social Fund Supports the Reintegration of the Long-term Unemployed Individuals Aged 50+ Into the Labor Market - A Comparison of the Federal States in Austria," Naše gospodarstvo/Our economy, Sciendo, vol. 67(2), pages 49-65, June.
    3. Lee, Taehoon & Peri, Giovanni & Viarengo, Martina, 2022. "The gender aspect of migrants’ assimilation in Europe," Labour Economics, Elsevier, vol. 78(C).
    4. Mercè Sala-Rios & Teresa Torres-Solé & Mariona Farré-Perdiguer, 2018. "Immigrants’ employment and the business cycle in Spain: taking account of gender and origin," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 463-490, August.

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