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The Impact of Networks, Segregation and Diversity on Migrants' Labour Market Integration. WWWforEurope Working Paper No. 22

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  • Thomas Horvath
  • Peter Huber

Abstract

We analyse the role of ethnic networks, segregation and diversity of a region on migrants' success in integration into the host countries' labour markets. We find a robust negative impact of ethnic networks on unemployment probabilities of the foreign born and a positive one on employment probabilities. In addition a similarly robust positive impact of ethnic diversity on the unemployment probabilities and a negative one on employment probabilities is found. With respect to overeducation our results are less robust, but in their majority point to a negative impact of ethnic networks on the probability of overeducated employment and an insignificant or positive impact of diversity. Segregation at the country level, by contrast, remains an insignificant determinant of both the probability of unemployment and of overeducated employment in most specifications and all three variables seem to be only very weakly correlated to the probability of being detached from the labour market and to the probability of being in education.

Suggested Citation

  • Thomas Horvath & Peter Huber, 2013. "The Impact of Networks, Segregation and Diversity on Migrants' Labour Market Integration. WWWforEurope Working Paper No. 22," WIFO Studies, WIFO, number 46883.
    • Handle: RePEc:wfo:wstudy:46883
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    Cited by:

    1. Karl Aiginger & Kurt Kratena & Margit Schratzenstaller-Altzinger & Teresa Weiss, 2014. "Moving Towards a New Growth Model. WWWforEurope Deliverable No. 3," WIFO Studies, WIFO, number 47247.
    2. Peter Huber & Doris Oberdabernig & Jesús Crespo Cuaresma & Anna Raggl, 2015. "Migration in an Ageing Europe: What are the Challenges? WWWforEurope Working Paper No. 79," WIFO Studies, WIFO, number 57886.
    3. Jesús Crespo Cuaresma & Peter Huber & Anna Raggl, 2015. "Reaping the Benefits of Migration in an Ageing Europe. WWWforEurope Policy Brief No. 7," WIFO Studies, WIFO, number 58161.
    4. Michael Böheim & Anna Strauss-Kollin & Teresa Weiss, 2015. "Moving Towards a New Growth Model – Policy Options. WWWforEurope Deliverable No. 10," WIFO Studies, WIFO, number 58556.
    5. Harald Badinger & David Bailey & Lisa de Propris & Peter Huber & Jürgen Janger & Kurt Kratena & Hans Pitlik & Thomas Sauer & Renaud Thillaye & Jeroen C.J.M. van den Bergh, 2016. "New Dynamics for Europe: Reaping the Benefits of Socio-ecological Transition – Part II: Model and Area Chapters. WWWforEurope Deliverable No. 12," WIFO Studies, WIFO, number 58792.

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