IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Economic Preferences and Attitudes of the Unemployed: Are Natives and Second Generation Migrants Alike?

  • Constant, Amelie F.

    ()

    (Temple University)

  • Krause, Annabelle

    ()

    (IZA)

  • Rinne, Ulf

    ()

    (IZA)

  • Zimmermann, Klaus F.

    ()

    (University of Bonn)

In this paper we study the economic effects of risk attitudes, time preferences, trust and reciprocity while we compare natives and second generation migrants. We analyze an inflow sample into unemployment in Germany, and find differences between the two groups mainly in terms of risk attitudes and positive reciprocity. Second generation migrants have a significantly higher willingness to take risks and they are less likely to have a low amount of positive reciprocity when compared to natives. We also find that these differences matter in terms of economic outcomes, and more specifically in terms of the employment probability about two months after unemployment entry. We observe a significantly lower employment probability for individuals with a high willingness to take risks. Some evidence suggests that this result is channeled through reservation wages and search intensity.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://ftp.iza.org/dp5380.pdf
Download Restriction: no

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5380.

as
in new window

Length: 30 pages
Date of creation: Dec 2010
Date of revision:
Publication status: published in: International Journal of Manpower, 2011, 32 (7), 825-851
Handle: RePEc:iza:izadps:dp5380
Contact details of provider: Postal:
IZA, P.O. Box 7240, D-53072 Bonn, Germany

Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information: Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:


References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Heitmueller, Axel, 2002. "Unemployment Benefits, Risk Aversion, and Migration Incentives," IZA Discussion Papers 610, Institute for the Study of Labor (IZA).
  2. Yann Algan & Christian Dustmann & Albrecht Glitz & Alan Manning, 2010. "The Economic Situation of First and Second-Generation Immigrants in France, Germany and the United Kingdom," Economic Journal, Royal Economic Society, vol. 120(542), pages F4-F30, 02.
  3. Yona Rubinstein & James J. Heckman, 2001. "The Importance of Noncognitive Skills: Lessons from the GED Testing Program," American Economic Review, American Economic Association, vol. 91(2), pages 145-149, May.
  4. Amelie F. Constant & Martin Kahanec & Ulf Rinne & Klaus F. Zimmermann, 2011. "Ethnicity, job search and labor market reintegration of the unemployed," International Journal of Manpower, Emerald Group Publishing, vol. 32(7), pages 753-776, November.
  5. Caliendo, Marco & Schmidl, Ricarda & Uhlendorff, Arne, 2010. "Social Networks, Job Search Methods and Reservation Wages: Evidence for Germany," IZA Discussion Papers 5165, Institute for the Study of Labor (IZA).
  6. Leo Kaas & Christian Manger, 2012. "Ethnic Discrimination in Germany's Labour Market: A Field Experiment," German Economic Review, Verein für Socialpolitik, vol. 13(1), pages 1-20, 02.
  7. Dohmen, Thomas J & Falk, Armin & Huffman, David & Sunde, Uwe, 2008. "Are Risk Aversion and Impatience Related to Cognitive Ability?," CEPR Discussion Papers 6852, C.E.P.R. Discussion Papers.
  8. David Laibson, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, Oxford University Press, vol. 112(2), pages 443-478.
  9. Borghans Lex & Lee Duckworth Angela & Heckman James J. & Weel Bas ter, 2008. "The Economics and Psychology of Personality Traits," ROA Research Memorandum 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  10. Ernst Fehr & Simon Gächter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 159-181, Summer.
  11. J. J. McCall, 1970. "Economics of Information and Job Search," The Quarterly Journal of Economics, Oxford University Press, vol. 84(1), pages 113-126.
  12. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
  13. David A. Jaeger & Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Holger Bonin, 2010. "Direct Evidence on Risk Attitudes and Migration," The Review of Economics and Statistics, MIT Press, vol. 92(3), pages 684-689, August.
  14. Cox, James C. & Orman, Wafa Hakim, 2010. "Immigrant Assimilation, Trust and Social Capital," IZA Discussion Papers 5063, Institute for the Study of Labor (IZA).
  15. Martin Kahanec & Anzelika Zaiceva, 2009. "Labor market outcomes of immigrants and non-citizens in the EU: An East-West comparison," International Journal of Manpower, Emerald Group Publishing, vol. 30(1/2), pages 97-115, May.
  16. Constant, Amelie F. & Zimmermann, Klaus F., 2009. "Work and Money: Payoffs by Ethnic Identity and Gender," IZA Discussion Papers 4275, Institute for the Study of Labor (IZA).
  17. Holzer, Harry J, 1988. "Search Method Use by Unemployed Youth," Journal of Labor Economics, University of Chicago Press, vol. 6(1), pages 1-20, January.
  18. Constant, Amelie F. & Gataullina, Liliya & Zimmermann, Klaus F., 2007. "Naturalization Proclivities, Ethnicity and Integration," IZA Discussion Papers 3260, Institute for the Study of Labor (IZA).
  19. Jeffrey Butler & Paola Giuliano & Luigi Guiso, 2009. "The Right Amount of Trust," NBER Working Papers 15344, National Bureau of Economic Research, Inc.
  20. David Card & John DiNardo & Eugena Estes, 1998. "The More Things Change: Immigrants and the Children of Immigrants in the 1940's, the 1970's, and the 1990's," JCPR Working Papers 30, Northwestern University/University of Chicago Joint Center for Poverty Research.
  21. Arne Uhlendorff & Klaus F. Zimmermann, 2014. "Unemployment Dynamics among Migrants and Natives," Economica, London School of Economics and Political Science, vol. 81(322), pages 348-367, 04.
  22. Bonin, Holger & Constant, Amelie & Tatsiramos, Konstantinos & Zimmermann, Klaus F, 2007. "Ethnic Persistence, Assimilation and Risk Proclivity," CEPR Discussion Papers 6084, C.E.P.R. Discussion Papers.
  23. Dohmen, Thomas J & Falk, Armin & Huffman, David & Sunde, Uwe, 2008. "The Intergenerational Transmission of Risk and Trust Attitudes," CEPR Discussion Papers 6844, C.E.P.R. Discussion Papers.
  24. Buurman, Margaretha & Delfgaauw, Josse & Dur, Robert & Van den Bossche, Seth, 2012. "Public sector employees: Risk averse and altruistic?," Journal of Economic Behavior & Organization, Elsevier, vol. 83(3), pages 279-291.
  25. Blackaby, D.H. & Leslie, D.G. & Murphy, P.D. & O'Leary, N.C., 2005. "Born in Britain: How are native ethnic minorities faring in the British labour market?," Economics Letters, Elsevier, vol. 88(3), pages 370-375, September.
  26. Uysal, Selver Derya & Pohlmeier, Winfried, 2011. "Unemployment duration and personality," Journal of Economic Psychology, Elsevier, vol. 32(6), pages 980-992.
  27. Paserman, M. Daniele, 2004. "Job Search and Hyperbolic Discounting: Structural Estimation and Policy Evaluation," IZA Discussion Papers 997, Institute for the Study of Labor (IZA).
  28. Pissarides, Christopher A, 1974. "Risk, Job Search, and Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1255-67, Nov.-Dec..
  29. Caliendo, Marco & Cobb-Clark, Deborah A. & Uhlendorff, Arne, 2010. "Locus of Control and Job Search Strategies," IZA Discussion Papers 4750, Institute for the Study of Labor (IZA).
  30. Eichhorst, Werner & Kuhn, Andrea & Thode, Eric & Zenker, Rosemarie, 2010. "Report No. 23: Traditionelle Beschäftigungsverhältnisse im Wandel," IZA Research Reports 23, Institute for the Study of Labor (IZA).
  31. Paldam, Martin & Svendsen, Gert Tinggaard, 2000. "An essay on social capital: looking for the fire behind the smoke," European Journal of Political Economy, Elsevier, vol. 16(2), pages 339-366, June.
  32. Per-Anders Edin & Magnus Gustavsson, 2008. "Time out of Work and Skill Depreciation," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 61(2), pages 163-180, January.
  33. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Jürgen Schupp & Gert G. Wagner, 2005. "Individual Risk Attitudes: New Evidence from a Large, Representative, Experimentally-Validated Survey," Discussion Papers of DIW Berlin 511, DIW Berlin, German Institute for Economic Research.
  34. Holger Bonin & Amelie Constant & Konstantinos Tatsiramos & Klaus F. Zimmermann, 2006. "Native-Migrant Differences in Risk Attitudes," Discussion Papers of DIW Berlin 560, DIW Berlin, German Institute for Economic Research.
  35. John Gibson & David McKenzie, 2009. "The Microeconomic Determinants of Emigration and Return Migration of the Best and Brightest: Evidence from the Pacific," CReAM Discussion Paper Series 0903, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  36. Matthias Wrede, 2011. "Hyperbolic discounting and fertility," Journal of Population Economics, Springer, vol. 24(3), pages 1053-1070, July.
  37. Stefano DellaVigna & M. Daniele Paserman, 2004. "Job Search and Impatience," NBER Working Papers 10837, National Bureau of Economic Research, Inc.
  38. Massey, Douglas S., 2005. "Worlds in Motion: Understanding International Migration at the End of the Millennium," OUP Catalogue, Oxford University Press, number 9780199282760, May.
  39. Christopher A. Pissarides, 1992. "Loss of Skill During Unemployment and the Persistence of Employment Shocks," The Quarterly Journal of Economics, Oxford University Press, vol. 107(4), pages 1371-1391.
  40. Blau, David M & Robins, Philip K, 1990. "Job Search Outcomes for the Employed and Unemployed," Journal of Political Economy, University of Chicago Press, vol. 98(3), pages 637-55, June.
  41. Pannenberg, Markus, 2010. "Risk attitudes and reservation wages of unemployed workers: Evidence from panel data," Economics Letters, Elsevier, vol. 106(3), pages 223-226, March.
  42. Birgitta Rabe, 2011. "Dual-earner migration. Earnings gains, employment and self-selection," Journal of Population Economics, Springer, vol. 24(2), pages 477-497, April.
  43. Marco Caliendo & Armin Falk & Lutz C. Kaiser & Hilmar Schneider & Arne Uhlendorff & Gerard van den Berg & Klaus F. Zimmermann, 2011. "The IZA Evaluation Dataset: towards evidence-based labor policy making," International Journal of Manpower, Emerald Group Publishing, vol. 32(7), pages 731-752, November.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp5380. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.