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What Institutions Help Immigrants Integrate? WWWforEurope Working Paper No. 77

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  • Peter Huber

Abstract

I analyse the importance of national migration policy and labour market institutions for immigrants' labour market integration. Results indicate that the sending country structure of immigrants to a country, its ethnic diversity and its wage bargaining institutions as well as product market regulation are the most important national institutions impacting immigrants' labour market integration. Variables related to the generosity of the welfare state and tax progressivity are, by contrast, only important in selecting migrants with high employment probabilities and migration policy variables remain unimportant altogether. Countries with more centralised wage bargaining, stricter product market regulation and countries with a higher union density, have worse labour market outcomes for their immigrants relative to natives even after controlling for compositional effects. Immigrants with better chances for labour market integration on account of observable characteristics self-select to countries with more centralised wage bargaining and higher minimum wages but a lower coverage rate by collective agreements. Liberal product market regulation, less centralised wage bargaining and ensuring inclusive trade unions thus assist the integration of immigrants in host countries' labour markets most strongly.

Suggested Citation

  • Peter Huber, 2015. "What Institutions Help Immigrants Integrate? WWWforEurope Working Paper No. 77," WIFO Studies, WIFO, number 57884, February.
    • Handle: RePEc:wfo:wstudy:57884
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    1. Guzi, Martin & Kahanec, Martin & Mýtna Kureková, Lucia, 2022. "The Impact of Immigration and Integration Policies On Immigrant-Native Labor Market Hierarchies," GLO Discussion Paper Series 1198, Global Labor Organization (GLO).
    2. Gra?iela Georgiana Noja & Nebojša Petroviæ & Mirela Cristea, 2018. "Turning points in migrants’ labour market integration in Europe and benefit spillovers for Romania and Serbia: the role of socio-psychological credentials," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 36(2), pages 489-518.
    3. Stefan Jestl & Michael Landesmann & Sebastian Leitner & Barbara Wanek-Zajic, 2022. "Trajectories of Employment Gaps of Refugees and Other Migrants: Evidence from Austria," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 41(2), pages 609-669, April.
    4. Stefan Jestl & Michael Landesmann & Sebastian Leitner & Barbara Wanek-Zajic, 2019. "Employment Gaps Between Refugees, Migrants and Natives: Evidence from Austrian Register Based Labour Market Data," wiiw Working Papers 167, The Vienna Institute for International Economic Studies, wiiw.
    5. 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, February.
    6. Raffaele Guetto, 2018. "Employment Returns to Tertiary Education for Immigrants in Western Europe: Cross-Country Differences Before and After the Economic Crisis," Social Inclusion, Cogitatio Press, vol. 6(3), pages 64-77.

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