Advertisement

Demography

, Volume 56, Issue 3, pp 1023–1050 | Cite as

Natives’ Attitudes and Immigrants’ Unemployment Durations

  • Sekou Keita
  • Jérôme ValetteEmail author
Article

Abstract

In this study, we investigate how the attitude of natives—defined as the perceived trustworthiness of citizens from different countries—affects immigrants’ labor market outcomes in Germany. Evidence in the literature suggests that barriers to economic assimilation might be higher for some groups of immigrants, but the role of natives’ heterogeneous attitudes toward immigrants from different countries of origin has received little attention. Using individual-level panel data from the German Socio-Economic Panel covering the years 1984 to 2014, we apply survival analysis methods to model immigrants’ unemployment durations. We find that lower levels of trust expressed by natives toward the citizens of a given country, measured using Eurobarometer surveys, are associated with increased unemployment durations for immigrants from this country. We show that this result is not driven by origin-specific unobserved heterogeneity and that it is robust to different specifications and alternative explanations.

Keywords

Immigrant workers Unemployment duration Discrimination 

Notes

Acknowledgments

We thank Simone Bertoli, Jean-Louis Combes, Vianney Dequiedt, Pascale Phélinas, Anne Viallefont, Pedro Vicente, Ekrame Boubtane, and Ababacar Gueye; all participants at the 28th SOLE conference in Raleigh, North Carolina, United States and at the workshop Migration and the Labour Markets in Edinburgh, UK; as well as four anonymous referees for their helpful comments and suggestions. We also thank Herbert Brücker for providing us data on immigration and unemployment rates in Germany. The data set used in this article was made available to us by the German Institute for Economic Research (DIW), Berlin. All remaining errors are our own responsibility.

Supplementary material

13524_2019_777_MOESM1_ESM.pdf (1008 kb)
ESM 1 (PDF 1007 kb)

References

  1. Akerlof, G. (1976). The economics of caste and of the rat race and other woeful tales. Quarterly Journal of Economics, 94, 599–617.CrossRefGoogle Scholar
  2. Aldashev, A., Gernandt, J., & Thomsen, S. L. (2009). Language usage, participation, employment and earnings: Evidence for foreigners in West Germany with multiple sources of selection. Labour Economics, 16, 330–341.CrossRefGoogle Scholar
  3. Algan, Y., & Cahuc, P. (2010). Inherited trust and growth. American Economic Review, 100, 2060–2092.CrossRefGoogle Scholar
  4. Arrow, K. (1973). The theory of discrimination. In O. Ashenfelter & A. Rees (Eds.), Discrimination in labor markets (pp. 3–33). Princeton, NJ: Princeton University Press.Google Scholar
  5. Ashraf, N., Bohnet, I., & Piankov, N. (2006). Decomposing trust and trustworthiness. Experimental Economics, 9, 193–208.CrossRefGoogle Scholar
  6. Becker, G. S. (1957). The economics of discrimination. Chicago, IL: University of Chicago Press.Google Scholar
  7. Bertram, H. (2013). Das Individuum und seine familie: Lebensformen, familienbeziehungen und lebensereignisse im erwachsenenalter (Deutsches Jugendinstitut Familien-Survey Band 4) [The individual and his family: Life forms, family relationships and life events in adulthood (German Youth Institute Family Survey Vol. 4)]. Berlin, Germany: Springer-Verlag.Google Scholar
  8. Bertram, H., Bayer, H., & Bauereiß, R. (2013). Familien-atlas: Lebenslagen und regionen in Deutschland: Karten und zahlen [Family atlas: Life situations and regions in Germany: Maps and numbers]. Berlin, Germany: Springer-Verlag.Google Scholar
  9. Bertrand, M., & Duflo, E. (2017). Field experiments on discrimination. In A. V. Banerjee & E. Duflo (Eds.), Handbook of economic field experiments (Vol. 1, pp. 309–393). Amsterdam, the Netherlands: North-Holland.Google Scholar
  10. Bertrand, M., & Mullainathan, S. (2004). Are Emily and Greg more employable than Lakisha and Jamal? A field experiment on labor market discrimination. American Economic Review, 94, 991–1013.CrossRefGoogle Scholar
  11. Bisin, A., Patacchini, E., Verdier, T., & Zenou, Y. (2011). Ethnic identity and labour market outcomes of immigrants in Europe. Economic Policy, 26, 57–92.CrossRefGoogle Scholar
  12. Bohnet, I., Frey, B. S., & Huck, S. (2000). More order with less law: On contract enforcement, trust and crowding. American Political Science Review, 95, 131–144.CrossRefGoogle Scholar
  13. Borjas, G. J. (1991). Immigration and self-selection. In J. M. Abowd & R. B. Freeman (Eds.), Immigration, trade, and the labor market (pp. 29–76). Chicago, IL: University of Chicago Press.Google Scholar
  14. Borjas, G. J. (2014). Immigration economics. Cambridge, MA: Harvard University Press.CrossRefGoogle Scholar
  15. Casey, T., & Dustmann, C. (2010). Immigrants’ identity, economic outcomes and the transmission of identity across generations. Economic Journal, 120, F31–F51.CrossRefGoogle Scholar
  16. Cettolin, E., & Suetens, S. (2018). Return on trust is lower for immigrants. Economic Journal. Advance online publication.  https://doi.org/10.1111/ecoj.12629
  17. Chiswick, B. R. (1978). The effect of Americanization on the earnings of foreign-born men. Journal of Political Economy, 86, 897–921.CrossRefGoogle Scholar
  18. Constant, A., & Massey, D. S. (2005). Labor market segmentation and the earnings of German guestworkers. Population Research and Policy Review, 24, 489–512.CrossRefGoogle Scholar
  19. Couch, K. A., & Fairlie, R. (2010). Last hired, first fired? Black-white unemployment and the business cycle. Demography, 47, 227–247.CrossRefGoogle Scholar
  20. Destatis. (2016, July 14). Immigration and net immigration peaked in 2015 [Press release]. Retrieved from https://www.destatis.de/EN/PressServices/Press/pr/2016/07/PE16_246_12421
  21. Fafchamps, M. (2006). Development and social capital. Journal of Development Studies, 42, 1180–1198.CrossRefGoogle Scholar
  22. Foddy, M., Platow, M. J., & Yamagishi, T. (2009). Group-based trust in strangers: The role of stereotypes and expectations. Psychological Science, 20, 419–422.CrossRefGoogle Scholar
  23. Frijters, P., Shields, M. A., & Wheatley Price, S. (2005). Job search methods and their success: A comparison of immigrants and natives in the U.K. Economic Journal, 115, F359–F376.CrossRefGoogle Scholar
  24. Fullin, G. (2011). Unemployment trap or high job turnover? Ethnic penalties and labor market transitions in Italy. International Journal of Comparative Sociology, 52, 284–305.CrossRefGoogle Scholar
  25. Gambetta, D. (2000). Can we trust trust? In D. Gambetta (Ed.), Trust: Making and breaking cooperative relations (pp. 213–237). Oxford, UK: Department of Sociology, University of Oxford.Google Scholar
  26. German Federal Statistical Office. (2016). Regional statistical database. Wiesbaden, Germany: Statistisches Bundesamt.Google Scholar
  27. Goebel, J., Grabka, M. M., Liebig, S., Kroh, M., Richter, D., Schröder, C., & Schupp, J. (2018). The German Socio-Economic Panel Study (SOEP). Jahrbücher für Nationalökonomie und Statistik/Journal of Economics and Statistics. Advance online publication.  https://doi.org/10.1515/jbnst-2018-0022
  28. Göran, P., & Hägg, T. (1994). The economics of trust, trust-sensitive contracts, and regulation. International Review of Law and Economics, 14, 437–451.CrossRefGoogle Scholar
  29. Guiso, L., Sapienza, P., & Zingales, L. (2009). Cultural biases in economic exchange? Quarterly Journal of Economics, 124, 1095–1131.CrossRefGoogle Scholar
  30. Karlson, K. B., Holm, A., & Breen, R. (2012). Comparing regression coefficients between same-sample nested models using logit and probit: A new method. Sociological Methodology, 42, 286–313.CrossRefGoogle Scholar
  31. Knack, S., & Keefer, P. (1997). Does social capital have an economic payoff? A cross-country investigation. Quarterly Journal of Economics, 112, 1251–1288.CrossRefGoogle Scholar
  32. Kogan, I. (2004). Last hired, first fired? The unemployment dynamics of male immigrants in Germany. European Sociological Review, 20, 445–461.CrossRefGoogle Scholar
  33. Kogan, I. (2011). New immigrants—Old disadvantage patterns? Labour market integration of recent immigrants into Germany. International Migration, 49(1), 91–117.CrossRefGoogle Scholar
  34. Lang, K., & Lehmann, J. Y. (2012). Racial discrimination in the labor market: Theory and empirics. Journal of Economic Literature, 50, 959–1006.CrossRefGoogle Scholar
  35. Lang, K., & Manove, M. (2011). Education and labor market discrimination. American Economic Review, 101, 1467–1496.CrossRefGoogle Scholar
  36. Leopold, L., Leopold, T., & Lechner, C. M. (2017). Do immigrants suffer more from job loss? Unemployment and subjective well-being in Germany. Demography, 54, 231–257.CrossRefGoogle Scholar
  37. Lin, D. Y., & Wei, L. J. (1989). The robust inference for Cox proportional hazards model. Journal of the American Statistical Association, 84, 1047–1078.Google Scholar
  38. Nauck, B., & Bertram, H. (Eds.). (1995). Kinder in Deutschland: Lebensverhältnisse von kindern im regionalvergleich (Deutsches Jugendinstitut Familien-Survey Band 5) [Children in Germany: Living conditions of children in a regional comparison (German Youth Institute Family Survey Vol. 5)]. Opladen, Germany: Leske + Budrich.Google Scholar
  39. Nunn, N., & Wantchekon, L. (2011). The slave trade and the origins of mistrust in Africa. American Economic Review, 101, 3221–3252.CrossRefGoogle Scholar
  40. Phelps, E. S. (1972). The statistical theory of racism and sexism. American Economic Review, 62, 659–661.Google Scholar
  41. Platow, M. J., Foddy, M., Yamagishi, T., Lim, L., & Chow, A. (2012). Two experimental tests of trust in in-group strangers: The moderating role of common knowledge of group membership. European Journal of Social Psychology, 42, 30–35.CrossRefGoogle Scholar
  42. Riach, P. A., & Rich, J. (2002). Field experiments of discrimination in the market place. Economic Journal, 112, F480–F518.CrossRefGoogle Scholar
  43. Rosén, A. (1997). An equilibrium search-matching model of discrimination. European Economic Review, 41, 1589–1613.CrossRefGoogle Scholar
  44. Roy, A. D. (1951). Some thoughts on the distribution of earnings. Oxford Economic Papers, 3, 135–146.CrossRefGoogle Scholar
  45. Sapienza, P., Toldra-Simats, A., & Zingales, L. (2013). Understanding trust. Economic Journal, 123, 1331–1332.CrossRefGoogle Scholar
  46. Silbereisen, R. K., & von Eye, A. (Eds.). (1999). Growing up in times of social change (Vol. 7). Berlin, Germany: Walter de Gruyter.Google Scholar
  47. Tanis, M., & Postmes, T. (2005). A social identity approach to trust: Interpersonal perception, group membership and trusting behavior. European Journal of Social Psychology, 35, 413–424.CrossRefGoogle Scholar
  48. Terza, J. V., Bazu, A., & Rathouz, P. (2008). A two-stage residual inclusion estimation: Addressing endogeneity in health econometric modeling. Journal of Health Economics, 27, 531–543.CrossRefGoogle Scholar
  49. Uhlendorff, A., & Zimmermann, K. F. (2014). Unemployment dynamics among migrants and natives. Economica, 81, 348–367.CrossRefGoogle Scholar
  50. van den Berg, G. J. (1994). The effects of changes of the job offer arrival rate on the duration of unemployment. Journal of Labor Economics, 12, 478–498.CrossRefGoogle Scholar
  51. World Value Surveys. (2015). World Value Survey 1981–2014 longitudinal aggregate v.20150418, 2015. Madrid, Spain: JDSystems Data Acrchive [aggregate file producer]. Retrieved from www.worldvaluessurvey.org
  52. Zschirnt, E., & Ruedin, D. (2016). Ethnic discrimination in hiring decisions: A meta-analysis of correspondence tests 1990–2015. Journal of Ethnic and Migration Studies, 42, 1115–1134.CrossRefGoogle Scholar

Copyright information

© Population Association of America 2019

Authors and Affiliations

  1. 1.Migration and International Labour StudiesInstitute for Employment Research (IAB)NurembergGermany
  2. 2.Centre d’Economie de la Sorbonne, Maison des Sciences ÉconomiquesUniversity Paris 1 Panthéon-SorbonneParisFrance

Personalised recommendations