Ethnic Identity and Labor Market Outcomes of Immigrants in Europe

Working Paper: CEPR ID: DP8212

Authors: Alberto Bisin; Eleonora Patacchini; Thierry Verdier; Yves Zenou

Abstract: Using data from the European Social Survey on most European countries, we look at the relationship between ethnic identity and employment prospects for immigrants from non-European countries. We find that a strong attachment to religion is associated with a lower probability of being employed. When we differentiate between first and second generations of immigrants, our evidence reveals signs of a cultural and economic integration of immigrants in Europe. However, when an extreme ethnic sentiment is preserved, the employment penalty is amplified. Our results also suggest that the strength of a person?s ethnic identity and its relationship with employment prospects may depend on the type of integration policy performed in the country where the immigrant lives. In particular, labor-market policies and family-reunion policies seem to facilitate the labor-market access to immigrants coming from non-European countries.

Keywords: ethnic identity; first and second-generation immigrants; integration policies; religion

JEL Codes: A14; J15; J18; Z19


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
strong attachment to religion (Z12)lower probability of employment (J68)
strong attachment to religion (Z12)employment penalty for first-generation immigrants (K37)
strong attachment to religion (Z12)employment penalty for second-generation immigrants (K37)
integration policies (F55)mitigate employment penalty associated with strong ethnic identity (J15)
strong ethnic identity (Z13)adverse employment outcomes (J79)

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