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What Explains Immigrant-native gaps in European Labor Markets: The Role of Institutions

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Abstract

The role of institutions in immigrant integration remains underexplored in spite of its essential significance for integration policies. This paper adopts the Varieties of Capitalism framework to study the institutional determinants of immigrant-native gaps in host labor markets. Using the EU LFS we first measure immigrant-native gaps in labor force participation, unemployment, low-skilled employment and temporary employment. We distinguish the gaps that can be explained by immigrant-native differences in characteristics from those that cannot be explained by such differences, as these require different integration policy approaches. In the second stage we measure the effects of institutional and contextual variables on explained and unexplained immigrant-native gaps. Our findings confirm that institutional contexts play a significant role in immigrant integration, and highlight the importance of tailoring policy approaches with regard to the causes of immigrant-native gaps.

Suggested Citation

  • Martin Guzi, 2015. "What Explains Immigrant-native gaps in European Labor Markets: The Role of Institutions," Discussion Papers 27, Central European Labour Studies Institute (CELSI).
  • Handle: RePEc:cel:dpaper:27
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    Cited by:

    1. repec:wfo:wstudy:58161 is not listed on IDEAS
    2. Jesus Crespo Cuaresma & Peter Huber & Anna Raggl, 2015. "Reaping the Benefits of Migration in an Ageing Europe," WWWforEurope Policy Brief series 7, WWWforEurope.

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    Keywords

    immigrant integration; integration policy; discrimination; labor market; Varieties of Capitalism;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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