Ethnic Enclaves,Networks and Self‐Employment among Middle Eastern Immigrants in Sweden

The proportion of immigrants from countries in the Middle East living in Sweden has increased since the 1970s, and it is a well‐known fact that immigrants from the Middle East suffer from low earnings and high rates of unemployment on the Swedish labour market. There are often great hopes that self‐employment will enable immigrants to improve their labour market situation. Further, in Sweden as in many other countries, the question of whether the existence of ethnic enclaves are good or bad for immigrants’ earnings and employment opportunities has also been widely debated. This paper presents a study of the extent to which Middle Eastern ethnic enclaves and networks in Sweden enhance or hinder immigrants’ self‐employment. The results show that the presence of ethnic enclaves increases the propensity for self‐employment. Thus, immigrants in ethnic enclaves provide their co‐ethnics with goods and services that Swedish natives are not able to provide. The results also show that ethnic networks seem to be an obstacle to immigrant self‐employment. One explanation is that an increase in network size implies increased competition for customers among self‐employed immigrants. The question of whether ethnic enclaves are good or bad for the integration of immigrants into the labour market has been widely debated. The results of this paper provide us with information about the integration puzzle. Ethnic enclaves seem to enhance self‐employment propensities among Middle Eastern immigrants in Sweden.     

A multidimensional employment quality index for Brazil, 2002–11

In countries where informal, insecure jobs are widespread, traditional labour market indicators – such as the unemployment rate, labour force participation rate and wages – are not necessarily the most meaningful. The authors use a multidimensional employment quality index to analyse the Brazilian labour market over the period 2002–11, across three dimensions: earnings, formality (measured by the existence of an employment contract and social security contributions) and job tenure. The results show a significant increase in employment quality overall, especially in the years 2009–11, but with considerable differences between wage employees and self‐employed workers, and between industries.     

Les transformations de l'intégration par l'emploi: Regards croisés : France métropolitaine - île de La Réunion

Against a background of mass unemployment and the increasing precariousness of employment, the current changes in the labour market demand that we examine the previously central role of paid employment in social integration. If the individual now deprived of employment or having a temporary contract is by dint of this fact less included in society or is less secure by not having a permanent salary, is it to say that he embodies the face of the de-affiliated, of those who miss out on social benefits? Taking the example of the Reunion Island which has the highest level of unemployment and population covered by the minimum income (RMI: Revenu Minimum d'Insertion) in the country, this article endeavours to explain and understand how, in the context of a protective society and increasingly flexible employment market, new methods of social integration without and resulting from paid employment are being formed.     

Immigrant Populations and the Labour Market in Greece at the Beginning of the Twenty‐First Century

Our purpose in undertaking this research is to methodically map the labour market circumstances of the main immigrant groups in Greece. We classify all of the Districts of Greece into three categories (Diverse, Mixed and Unmixed) according to the ethnic composition of each District. We measure how the employment status of the immigrants varies (1) according to the ethnic group and sex of the immigrant, and (2) according to the ethnic composition and economic structure of a District. In general, the majority of immigrants exhibit lower unemployment and higher economic activity rates than the indigenous Greeks. Three immigrant groups (Albanians, Bulgarians and “Other”), which make up two‐thirds of the foreign‐born population of Greece, have lower unemployment rates than the national average, and lower rates than Greeks as well. The poorest labour market outcomes are observed in Unmixed and Mixed Districts, whereas Diverse Districts are better off. At the regional level, the most disadvantaged Geographical Department is the Ionian Islands, since it presents the highest unemployment rates for the general population for both sexes. With regard to sex‐differential unemployment across immigrant groups, we found that women exhibit higher unemployment than men in almost every ethnic group.     

The Native‐Immigrant Income Gap among the Self‐Employed in Sweden

During recent years we have observed that non‐western immigrants are overrepresented among the self‐employed in Sweden. A reason for this might be the difficulties faced by immigrants in the labour market. The unemployment rate among non‐western immigrants in Sweden is higher than among natives with similar human capital characteristics. While this is a well‐established result, we do not know much about how self‐employed immigrants perform economically compared to their native counterparts. The purpose of this paper is to describe and analyse the incomes of self‐employed immigrants and natives in Sweden. We will also discuss possible explanations for the income gap we find. We use Swedish register data for the period 1998 to 2002 and the population studied consists of individuals who have been continuously self‐employed during this period. By performing the analysis on this group of self‐employed we get a measure of the difference among the long‐term self‐employed. The outcome of interest is the average income over the period. Income regressions are estimated using both OLS and quantile regressions. We find that self‐employed immigrants receive significantly lower incomes than their native counterparts when controlling for individual characteristics, industry and start‐up year of the firm. The income gap is larger for non‐western immigrants than for western immigrants. Quantile regressions show that the native‐immigrant income gap is smaller at the top than at the bottom of the income distribution. Several possible explanations for the native‐immigrant income gap are discussed. One possible explanation is that immigrants have a lower reservation wage and accepts staying in business receiving a lower income than comparable natives. Another explanation might be that there is discrimination against self‐employed immigrants that will lead to lower incomes. There can be consumer discrimination or discrimination from banks and real estate owners.     

The Receipt of Transfer Payments by Immigrants in Sweden

Using the native-born as a benchmark, this article examines the reliance of immigrants on Sweden's social safety net. Both in the raw data, and after conditioning on a number of explanatory variables, we find that there are differences between immigrants and natives regarding participation in the Swedish income security system. We also find that there are differences in this respect between immigrants from different regions as well as between more recent and earlier cohorts of immigrants. As regards unemployment insurance benefits and cash labour market assistance, no clear pattern can be discerned in the results. In the case of early retirement pension and social assistance, however, the picture looks different. Immigrants arriving at an early date from typical labour immigration regions are over-represented in early retirement. Immigrants, especially non-European immigrants with a recent date of arrival, are over-represented among recipients of social assistance. The overall conclusion is that the immigrants' total rate of participation in the income security system is determined by their rate of unemployment and their state of health. On the other hand, the distribution of their participation among the different components of the income security system is highly dependent on their length of residence in Sweden and where they come from.     

What Makes an Entrepreneur and Does it Pay? Native Men,Turks, and Other Migrants in Germany

This paper focuses on the entrepreneurial endeavours of immigrants' and natives in Germany, concentrating on Turks, Germany's largest immigrant group and one under‐studied in the literature. Self‐employed Turks in Germany represent about 70 per cent of all Turkish entrepreneurs in the European Union. We use data from the German Socio‐economic Panel to study patterns of self‐employment. First, we identify the characteristics of the self‐employed individuals and understand their underlying drive into self‐employment. Next we investigate how immigrant entrepreneurs fare in the labour market and compare their earnings to those of the natives. It is important for decision makers to understand entrepreneurial patterns so that they can shape policy that better fosters entrepreneurial activities. This paper presents several findings that can inform better policymaking. First, our investigation indicates that education is not decisive in determining whether one will choose self‐employment over salaried work nor in explaining earnings. The estimated age‐earnings profiles are the same for natives and immigrants, while the proclivity to become self‐employed is concave with respect to age for both groups. Immigrants' start with a higher probability to work than natives but have a slower increase in the self‐employment probabilities thereafter. The earnings of self‐employed immigrants' are higher initially, but their earnings path crosses eventually that of the natives. Second, we find some suggestion of ethnic entrepreneurial spirit. Turks are 70 per cent more likely to be self‐employed than any other immigrant group, although they do not necessarily earn more. These patterns should be further explored.     

Physical and mental health inequalities between native and immigrant Swedes

To study health inequalities between native and immigrant Swedes, we investigated differences in self‐rated health (SRH), mental wellbeing (MW), common symptoms (CS), and persistent illness (PI), and if socioeconomic status (SES), negative status inconsistency, or social support could account for such differences. A secondary analysis was conducted on questionnaire data from a random adult population sample of 4,023 individuals and register data from Statistics Sweden. χ² tests and binary logistic regressions were used to identify health differences and study these after accounting for explanatory variables. Compared with natives, immigrants more commonly reported negative status inconsistency, poorer SES, and poorer social support as well as poor SRH, very poor MW, and high level of CS but not PI. Significant differences were accounted for by work‐related factors and social support. We encourage future research to address how pre‐ and peri‐migration factors relate to immigrants’ post‐migration SES, social support, and health status.

Policy Implications

• Given the relationship between work‐related factors (employment status, hours worked per week, and income) and all health outcomes in this study, labour market interventions that facilitate the integration of immigrants into the labour market, and into occupations that better correspond with their capacity, will arguably have public health benefits.
• Feelings of loneliness was, in our study, important in accounting for immigrants’ poorer self‐rated health compared with natives’. Therefore, we endorse interventions that facilitate immigrants’ social networking and integration and thereby reduce feelings of loneliness.
• Common physical and mental symptoms may be important indicators of health and we, thus, suggest these to be taken into account when developing ill‐health prevention programmes.

     

Six central features of the Chinese labour market: A literature survey

In this comprehensive analytical overview, the author pays particular attention to the changing structure of China's employment towards more private‐sector jobs in urban areas; its rising wages and widening earnings inequality; the persistence of its hukou system, causing labour market discrimination, an urban labour shortage and a rural labour surplus; its more market‐oriented wage structure, albeit with segmentation between firm ownership types; its relatively low unemployment; and the relatively weak role of its traditional labour market institutions, including minimum wages and trade unions. The aim is to contribute to the development of more suitable, China‐specific theoretical models and sound policy analysis.     

Regional wages and subjective measures of employment opportunities

We utilise a rich set of regional labour market variables to explain regional variation in Norwegian manufacturing wages. In particular, regional indicators of labour market conditions are computed from survey data in which respondents are asked to evaluate local employment opportunities. We find that average reported satisfaction with local job prospects and other survey-based indicators perform better in regional wage equations than traditional labour market variables, including the regional unemployment rate. Our results suggest that subjective measures of employment opportunities provide useful information about wage pressure.     

Culture,Intermarriage, and Immigrant Women's Labor Supply

We examine the impact of culture on the work behaviour of second‐generation immigrant women in Canada. We contribute to the literature by analysing the role of intermarriage in intergenerational transmission of culture and its effect on labour market outcomes. Using female labour force participation and total fertility rates in the country of ancestry as cultural proxies, we find that culture affects the female labour supply. Cultural proxies are significant in explaining number of hours worked by second‐generation women with immigrant parents. The impact of culture is significantly larger for women with immigrant parents who share the same ethnic background than for those with intermarried parents. The weaker effect of culture for women raised in intermarried families stresses the importance of intermarriage in assimilation process. Our findings imply that government policies targeting women's labour supply may have differential effects on the labour market behaviour of immigrant women of different ancestries.

Policy Implications

• The result that culture has statistically significant impact on second‐generation immigrant women's labour supply has policy implications in terms of the government programmes and benefits that target the labour supply of women and immigration policies in general.
• Our findings imply that government policies targeting women's labour supply may have differential influence on the labour market behaviour of second‐generation immigrant women of different ancestries.

     

EU-Mediterranean youths in the crisis: substitution vs. income effect

The economic crisis that erupted in 2008 has had particularly adverse effects on the youth labour market outcomes in the European Union Mediterranean economies. So far little evidence is available on the reaction of the young to the adverse conditions their household members faced due to the crisis. Youths could have decided to prolong or stay in education instead of participating on the labour market (substitution effect) or they could have decided to increase their participation (income effect). By using the EU Labour Force Survey data, we explore the probability of young adults changing their labour market status from (i) inactivity to employment, (ii) inactivity to unemployment, (iii) employment to education, and (iv) unemployment to education in response to labour market outcome changes in their households: (i) both parents losing the job; (ii) one of the parents losing the job, (iii) both parents becoming inactive, (iv) one of the parents becoming inactive, and (v) both parents remaining unemployed. Estimated probit models include seven EU Mediterranean countries during the 2006–2015 period. Results support both income and substitution effect, without clear identification of the dominance of one effect over the other.     

Determinants of employment of recently arrived Mexican immigrant wives

The work force participation of married, Mexican-origin immigrant women who came to the US in the 1980s was investigated. Determinants of employment utilized in this study are the women's human capital stock, household resources, and labor market structural factors. Nine hypotheses were derived from the analytical model and were examined through logistic regression. Findings showed that all human capital resource and structural labor market factors were significantly related to employment. On the other hand, four of the five family household factors namely: the age and presence of children in the household, husband's income, husband's employment, and non-labor income were significantly related to employment. Furthermore, the positive factors indicating the likelihood of being employed in 1989 for Mexican immigrant wives are: 1) being 25-54 years of age; 2) higher educational levels; 3) speaking fluent English; 4) lower levels of husband's income and non-labor income; 5) employment of husband in 1989; 6) absence of children under age 6 at home; 7) lower non-Hispanic female unemployment rates; 8) higher work force proportion employed in immigrant female-dependent occupations; 9) lower proportions of the Metropolitan Statistical Areas (MSA) population being of Mexican origin; and 10) smaller MSA populations.     

Strong Ties,Weak Ties,and Human Capital: Latino Immigrant Employment Outside the Enclave*

Abstract This study focuses on the role of social ties and human capital in the integration of Latino immigrants into the local economy. This analysis extends earlier research by focusing on more rural contexts with limited labor‐market opportunities and less access to social resources provided by coethnics. We reconsider conclusions of previous studies by focusing on areas with limited labor‐market opportunities and less access to resources provided by coethnics. Using data from in‐depth interviews, focus‐group discussions, and surveys of former farmworkers in five rural communities in New York, we consider how individuals move from agricultural to other types of employment. Multinomial logit and ordinary least squares regression analyses confirm indications from our qualitative data that strong social ties, weak ties, and human capital all play distinctive parts in the economic integration of immigrants outside the ethnic enclave. These resources have the most positive impact on incomes when they contribute to the immigrants' self‐reliance in finding employment. This finding is consistent with observations from the social‐network literature that those who are less reliant on strong social ties are better able to take advantage of a broader range of labor‐market opportunities.     

Income distributions,labour market sectors and the Goldschmidt hypothesis: the nonmetropolitan United States in 1970 and 1980

Local social structures are not simply their national counterparts writ small. There are autonomous, locality-specific influences which have a significant bearing on variations in socio-economic conditions. To show this. this paper concentrates on two measures of income distribution — family/household income inequality and poverty rates. Drawing on data from a one-in-six systematic sample of nonmetropolitan U.S. counties for 1970 and 1980, variations in these conditions are evaluated in the context of labour market segmentation and Goldschmidt's ideas on the socio-economic consequences of large-scale farms. The direct effects of these causal forces are shown to be influenced by the employment structures of local labour markets. The most important determinants of income distribution differences within labour market types are shown to be monopoly sector employment, competitive sector employment, large farm holdings, nonwhite population compositions and location within the southern United States.     

Working,yet not working: Assessing labour underutilization in India

Labour market responses to past business downturns across countries have been ambiguous and paradoxical, including both pro- and counter-cyclical reactions. In the absence of adequate social safety nets, including unemployment insurance, counter-cyclical employment rates could signal distress rather than productive employment opportunities. Juxtaposing household employment- unemployment data with the recommendations of the 19th International Conference of Labour Statisticians on labour underutilization, this article critiques existing data on underemployment in India and calls for the review of data collection methods to better inform labour market policies.     

Arbeitslos oder erwerbsunfähig?

An international comparison of unemployment rates suggests a poor performance of the German labour market. Based on comparative analyses for Germany, the Netherlands, France, Denmark, the UK and the United States the paper tries to show that a more sophisticated picture can be drawn by taking additional forms of non-employment (e.g. disability, retirement or out of labour force) into account. For this purpose data from the “European Social Survey” (ESS) and the survey “Citizenship, Involvement and Democracy” collected in 2004 and 2005 is analysed. While “unemployment” plays a dominant role in Germany, people with comparable demographic characteristics and similar health status are increasingly classified as “permanently disabled” in the other countries. The results stress that an international comparison of labour market performance and especially a comparison of the effectiveness of labour market and social policy reforms should not only rely on employment and unemployment rates. Taking alternative forms of non-employment into account can increase our knowledge and understanding of functional differences of labour markets in Europe and the United States.     

Economic growth,labour flexibilization and employment quality in Colombia, 2002–11

Over the period 2002–11, the Colombian labour market saw a marked improvement in employment opportunities, accompanied by an increase in nonstandard forms of employment. The authors look at how this affected employment quality, using a composite index based on Categorical Principal Components Analysis (CATPCA). They observe a small but widespread improvement in employment quality – mainly for self‐employed women – brought about by higher earnings, increased social protection and less time‐related underemployment. However, a considerable “quality deficit” remains, which calls for policies to strengthen labour market institutions and stimulate productivity and investment.     

The effect of labour market polarization on university students’ job market‐related outcomes in the Republic of Korea: Implications for youth unemployment

This article aims to assess the effect of the labour market environment on university students’ labour market‐related behaviour in the Republic of Korea. Using data from the country's Graduates Occupational Mobility Survey for 2005–13, the author estimates the effect of macroeconomic variables on university students’ job market‐related outcomes. Results indicate that labour market polarization, as measured by the labour market polarization index developed by Chung and Jung (2016), has a significant effect on both the nominal and masked (through extension of university enrolment and university transfers) unemployment of university students. These findings imply that the labour market structure is a key element in understanding youth unemployment.