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Seeking similarity: How immigrants and natives manage at the labor market

Author

Listed:
  • Olof Aslund

    (Institute for Labour Market Policy Evaluation (IFAU), Uppsala University)

  • Lena Hensvik

    (Institute for Labour Market Policy Evaluation (IFAU), Uppsala University)

  • Oskar Nordstrom Skans

    (Institute for Labour Market Policy Evaluation (IFAU), Uppsala University)

Abstract

We show that immigrant managers are substantially more likely to hire immigrants than are native managers. The finding holds when comparing establishments in the same 5-digit industry and location, when comparing different establishments within the same firm, when analyzing establishments that change management over time, and when accounting for within- establishment trends in recruitment patterns. The effects are largest for small and owner-managed establishments in the for-profit sector. Separations are more frequent when workers and managers have dissimilar origin, but only before workers become protected by EPL. We also find that native managers are unbiased in their recruitments of former coworkers, suggesting that information deficiencies are important. We find no effects on entry wages. Our findings suggest that a low frequency of immigrant managers may contribute to the observed disadvantages of immigrant workers.

Suggested Citation

  • Olof Aslund & Lena Hensvik & Oskar Nordstrom Skans, 2009. "Seeking similarity: How immigrants and natives manage at the labor market," CReAM Discussion Paper Series 0932, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  • Handle: RePEc:crm:wpaper:0932
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    More about this item

    Keywords

    Minority workers; Labor mobility; Workplace segregation;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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