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The impact of networks, segregation and diversity on migrants' labour market integration

Author

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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 over-education our results are less robust, but in their majority point to a negative impact of ethnic networks on the probability of over-educated 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 Papers series 22, WWWforEurope.
  • Handle: RePEc:feu:wfewop:y:2013:m:7:d:0:i:22
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    Citations

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    Cited by:

    1. Jesus Crespo Cuaresma & Peter Huber & Anna Raggl, 2015. "Reaping the Benefits of Migration in an Ageing Europe," WWWforEurope Policy Brief series 7, WWWforEurope.
    2. Michael Böheim & Anna Strauss & Teresa Weiss, 2015. "Moving towards a new growth model. Policy options," WWWforEurope Deliverables series 10, WWWforEurope.
    3. Karl Aiginger & Kurt Kratena & Margit Schratzenstaller & Teresa Weiss, 2014. "Moving towards a new growth model," WWWforEurope Deliverables series 3, WWWforEurope.
    4. Gunther Tichy, 2015. "Protecting social inclusion and mobility in a low growth scenario," WWWforEurope Working Papers series 100, WWWforEurope.
    5. Harald Badinger & David Bailey & Lisa De Propris & Peter Huber & Jürgen Janger & Kurt Kratena & Hans Pitlik & Thomas Sauer & Renaud Thillaye & Jeroen van den Bergh, 2016. "New Dynamics for Europe: Reaping the Benefits of Socio-ecological Transition. Synthesis Report Part II," WWWforEurope Deliverables series 12, WWWforEurope.
    6. Nowotny, Klaus, 2013. "Institutions and the Location Decisions of Highly Skilled Migrants to Europe," Working Papers in Economics 2013-3, University of Salzburg.

    More about this item

    Keywords

    Integration; networks; diversity;

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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