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Unemployment of immigrants and natives over the business cycle: evidence from the Austrian labor market

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Abstract

We analyze differences in unemployment between natives and immigrants over the business cycle. Using matched employer-employee data for Austria, we find that immigrants' unemployment rate and flows into and out of unemployment are significantly more sensitive to labor market shocks than those of comparable natives. This is particularly true for immigrants from outside the European Economic Area. According to existing theory, a greater variability in the employment of immigrants can be due to a selection of immigrant workers into specific industries or temporary jobs. However, we do not find this confirmed in our data.

Suggested Citation

  • Nora Prean & Karin Mayr, 2012. "Unemployment of immigrants and natives over the business cycle: evidence from the Austrian labor market," NRN working papers 2012-10, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    • Handle: RePEc:jku:nrnwps:2012_10
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    Cited by:

    1. Raquel Carrasco & J. Ignacio García-Pérez, 2015. "Employment Dynamics Of Immigrants Versus Natives: Evidence From The Boom-Bust Period In Spain, 2000–2011," Economic Inquiry, Western Economic Association International, vol. 53(2), pages 1038-1060, April.
    2. Clemens, Marius, 2016. "Migration, Unemployment and the Business Cycle - A Euro Area Perspective," VfS Annual Conference 2016 (Augsburg): Demographic Change 145578, Verein für Socialpolitik / German Economic Association.

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    Keywords

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    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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