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Seeking Similarity: How Immigrants and Natives Manage at the Labor Market

  • Aslund, Olof

    ()

    (IFAU)

  • Hensvik, Lena

    ()

    (IFAU)

  • Nordström Skans, Oskar

    ()

    (Uppsala University)

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 co-workers, 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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4640.

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Length: 43 pages
Date of creation: Dec 2009
Date of revision:
Publication status: published in: Journal of Labor Economics, 2014, 32(3), 405–442
Handle: RePEc:iza:izadps:dp4640
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  1. Judith K. Hellerstein & Melissa McInerney & David Neumark, 2008. "Neighbors And Co-Workers: The Importance Of Residential Labor Market Networks," NBER Working Papers 14201, National Bureau of Economic Research, Inc.
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  16. repec:nbr:nberbk:laze08-1 is not listed on IDEAS
  17. Michael A. Stoll & Steven Raphael & Harry J. Holzer, 2004. "Black Job Applicants and the Hiring Officer's Race," ILR Review, Cornell University, ILR School, vol. 57(2), pages 267-287, January.
  18. Judith Hellerstein & David Neumark & Melissa McInerney, 2007. "Spatial Mismatch or Racial Mismatch?," Working Papers 07-16, Center for Economic Studies, U.S. Census Bureau.
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