Labour market integration of immigrants: estimating local authority effects

We propose a method for computing indicators of the relative success of local authorities at integrating new immigrants in the labour market, taking account of differences in characteristics of immigrants and local labour markets. The indicator for integration success is based on mean duration from date of residence permit to start of an employment spell. We apply this method to a Danish administrative dataset. Correcting for differences in immigrant characteristics and local labour market conditions has an important impact on the estimated ranking of local authorities. We investigate how robust the ranking is with respect to changes in the specification of criteria for integration success and controls.

Post-migration investments in education and job search: a family perspective

This paper examines post-migration investments in schooling and job search of immigrant families using new longitudinal data for Australia. Higher education levels at the time of arrival are associated with a greater probability of enrolling in school after migration. In households where the visa category would suggest that post-migration investments might be important, we find higher rates of school enrolment and job search. Traditional gender roles appear to dictate which partner makes the investments in formal schooling. However, labour market advantage, captured by principal applicant status, appears to dictate which partner makes greater investments in job search.

The influence of market wages and parental history on child labour and schooling in Egypt

This paper examines the influence of adult market wages and having parents who were child labourers on child labour, when this decision is jointly determined with child schooling, using data from Egypt. The empirical results suggest that low adult market wages are key determinants of child labour; a 10% increase in the illiterate male market wage decreases the probability of child labour by 22% for boys and 13% for girls. The findings also indicate the importance of social norms in the intergenerational persistence of child labour: parents who were child labourers themselves are on average 10% more likely to send their children to work. In addition, higher local regional income inequality increases the likelihood of child labour.

Dropping out of post-compulsory education in the UK: an analysis of determinants and outcomes

We analyse the decision to drop out of post-compulsory education over the period 1985–1994 using data from the Youth Cohort Surveys. We show that the dropout rate declined between 1985 and 1994, in spite of the rising participation rate in education, but is still substantial. Dropping out is more or less constant over the period of study, though the risk of dropout does vary with young people’s prior attainment, ethnicity, family background and the state of the labour market. The course of study has a substantial effect on the risk of dropout.

Regional mismatch and unemployment: theory and evidence from Italy, 1977–1998

We describe the functioning of a two-region economy characterized by asymmetric wage setting. Labour market tightness in the leading-region affects wages in the whole economy. In equilibrium, net labour demand shifts towards the leading region raise unemployment elsewhere and leave regional wages unchanged, causing an increase in aggregate unemployment. Based on SHIW micro-data on earnings, we find strong evidence that wages in Italy only respond to Northern unemployment. We estimate that around 33% of the increase in Italian unemployment during 1977–1998 can be explained by regional mismatch, mainly due to an excess labour supply growth in the South.

The impact of the labour market on the timing of marriage and births in Spain

This paper investigates how education and the labour market affect Spanish individual decisions on the timing of marriage and births, using a Cox hazard approach. It disentangles men and women, and two groups, Cohort 1945–1960 and Cohort 1961–1977. Results show that female employment delays marriage in Cohort 1945–1960, but it has a reverse effect in Cohort 1961–1977. We also find evidence that employment is a barrier for family formation since employed women postpone births in both cohorts. The precarious Spanish labour markets, captured by female unemployment rates, delay family formation, especially by putting off marriage. Male unemployment, at the individual level, impacts negatively on fertility only through delaying marriage.

The Extent of Economic Vulnerability in the Canadian Labour Market and Federal Jurisdiction: Is There a Role for Labour Standards?

This paper characterizes vulnerable workers in Canada and the federal jurisdiction, based upon characteristics such as employment status, demographic characteristics, and job characteristics, and identifies areas in which labour standards may have a role. Based on this analysis, the paper evaluates the potential for labour standards to address economic vulnerability, focusing on labour standards policies aimed at wages and benefits, hours, and employment arrangements. In addition, the analysis considers the extent to which labour standards are likely to reach vulnerable workers. The results suggest several potential roles for labour standards and highlights policy implications.

Depressive Symptoms Among Native and Immigrant Adolescents in Norway: The Role of Gender and Urbanization

The study investigates depressive symptoms among 3,431 adolescents aged 13–15 years. The sample comprises both native Norwegian and immigrant adolescents living in Norway. The main finding of the study is that the level of depressive symptoms is significantly higher among the immigrant adolescents than their Norwegian counterparts. When analysed separately for boys and girls, the difference is still significant for boys. Generally depressive symptoms are significantly higher among girls than among boys. Depressive symptoms, especially in boys, may also be related to the degree of urbanization of the area they live in. In cities, there is a significant difference between native Norwegian and immigrant boys, with immigrant boys having a higher level of depressive symptoms than native Norwegians. The implications for future research about immigrant adolescents and their psychosocial adjustment are discussed.

Sacrificing Their Careers for Their Families? An Analysis of the Penalty to Motherhood in Europe

This paper examines the extent of and the mechanisms behind the penalty to motherhood in six European countries. Each country provides different levels of support for maternal employment allowing us to determine institutional effects on labour market outcome. While mothers tend to earn less than non-mothers, the penalty to motherhood is considerably lower in countries with policy support for working mothers. The paper establishes the United Kingdom and West Germany to have the least policy support for working mothers as well as the largest penalties to motherhood.

The Parental Leave Benefit Reform in Germany: Costs and Labour Market Outcomes of Moving towards the Nordic Model

Germany is known to have one of the lowest fertility rates among Western European countries and also relatively low employment rates of mothers with young children. Although these trends have been observed during the last decades, the German public has only recently begun discussing these issues. In order to reverse these trends, the German government recently passed a reform of the parental leave benefit system in line with the model practiced in Nordic countries. The core piece of the reform is the replacement of the existing means-tested parental leave benefit by a wage-dependent benefit for the period of one year. In this paper we simulate fiscal costs and expected labour market outcomes of this reform. Based on a micro-simulation model for Germany we calculate first-round effects, which assume no behavioural changes and second-round effects, where we take labour supply changes into account. Our results show that on average all income groups, couples and single households, benefit from the reform. The calculation of overall costs of the reform shows that the additional costs are moderate. As far as the labour market behaviour of parents is concerned, we find no significant changes of labour market outcomes in the first year after birth. However, in the second year, mothers increase their working hours and labour market participation significantly. Our results suggest that the reform will achieve one of its aims, namely the increase in the labour market participation of mothers with young children.

Too many migrants, too few services: a model of decision-making on immigration and integration with cultural distance

We model the political demand for immigrants as a trade-off that native voters face between having services, assumed to be produced only by unskilled and nonassimilated immigrants, and experiencing disutility due to the immigrant workers having a culture different from the native culture. Immigrants decide whether to integrate into the native culture. We show that if services are priced according to per unit costs, the market demand for immigrants will exceed the political demand. Market forces then lead to higher services prices, implying that the initially allowed number of immigrants is ‘politically’ too large.

Labour mobility and regional disparities: the role of female labour participation

Unemployment rates, as well as income per capita, differ vastly across the regions of Europe. Labour mobility can play a role in resolving regional disparities. This paper focuses on the questions of why labour mobility is low in the EU and how it is possible that it remains low. We explore whether changes in male and female labour participation act as an important alternative adjustment mechanism. We answer this question in the affirmative. We argue that female labour participation is very important in adjusting to regional disparities.

Imperfect goods and labor markets, and the union wage gap

Existing theoretical literature fails to explain satisfactorily the differences between the pay of workers who are covered by collective agreements and others who are not. This study aims at providing a model framework that is amenable to an analysis of this issue. Our general-equilibrium approach integrates a dual labor market and a two-sector product market. The results suggest that the so-called “union wage gap” is largely determined by the degree of centralization of the bargains and, to a somewhat lesser extent, by the expenditure share of the unionized sector's goods.

Disagreement over the immigration of low-income earners in a welfare state

This paper studies natives’ economically motivated preferences over different levels of immigration of low-income earners. Immigration affects natives through both intra- and intergenerational redistribution programmes and in the labour market. Our analysis suggests, in a welfare state that looks after the poor and the aged, economic motivation does not necessarily lead a native to have an extreme opinion on the preferable level of immigration, although it causes disagreement among natives. We find, regardless of parameter values, high-income earners prefer at least as much immigration as low-income earners who, in turn, prefer at least as much immigration as pensioners. The median voter is then likely to be a low-income native.

Ethnic and parental effects on schooling outcomes before and during the transition: evidence from the Baltic countries

This paper examines human capital gap between titular ethnicities and Russian-speaking minorities, which has emerged in Estonia, Latvia, and Lithuania during the transition and remains significant after controlling for parental education. For recent cohorts, unexplained gap is declining in Lithuania (despite absence of Russian language tertiary education) and in Estonia. Furthermore, we investigate intergenerational mobility in the Baltic countries. Parental education has a strong positive effect on propensity to obtain tertiary education, both in the Soviet era and post-Soviet period. Transition to the market has weakened mother’s education effect for titular ethnicities, while the opposite is true for minorities.

How important is homeland education for refugees’ economic position in The Netherlands?

We use data on refugees admitted to The Netherlands that include registration of education in their homeland by immigration officers. Such data are seldom available. We investigate the quality and reliability of the registrations and then use them to assess effects on refugees’ economic position during the first 5 years after arrival. The most remarkable finding is the absence of returns to higher education.

The Differentiation of Social Demands in Europe. The Social Basis of the European Models of Capitalism

This paper tests the impact of various determinants of the preference for two key elements of the European social models: redistribution and trade unions, using individual data from the first round of the European Social Survey. The basic hypothesis is that the main determinant of an individual’s support for these elements of the European models is the social position of the individual in terms of income, status and risks attached to their labour market insertion. The paper also considers the relative importance of less ‘materialist’ influences such as religion or other cultural determinants. The estimations show that ‘materialist’ determinants are by far the most important influences on individual preferences, contrary to what most social theories of modernisation contend.

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Homogamy by education and migration status in Monterrey,Mexico: changes and continuities over time

This paper reviews changes in homogamy by migration status and educational level in Monterrey, Mexico, through the analysis of marriage patterns for two cohorts of men born in 1905–1934 and 1940–1969. Results show a significant increase in educational homogamy, as well as in homogamy by rural origins. The changes suggest that education has played an increasingly important role in the process of mate selection, although certain particularistic characteristics, such as being a rural immigrant, are still important in marriage formation. The paper concludes with a discussion of the implications of these findings for the relationship between homogamy and social stratification.

The Place of Place: Location and Immigrant Economic Well-being in Canada

In recent years, successive cohorts of immigrants to Canada have experienced a striking level of deterioration in their economic well-being. At the same time, more immigrants than ever before are choosing to live in Montréal, Toronto, or Vancouver, Canada’s three-first-tier or ‘gateway cities’. This paper uses instrumental variable regression techniques to determine the extent to which gateway city clustering is related to immigrant economic well-being. It identifies whether employment status, earnings, and employment suitability would significantly improve if more immigrants chose to live outside of Canada’s three gateway cities. The results suggest that, for the most part, although immigrants do worse than the native-born in gateway cities, they do experience marginally higher earnings than their non-gateway counterparts. Income and unemployment rates are higher for immigrants in gateway cities than they are for the native-born, but the gateway/non-gateway disparity is minimal. Levels of employment mismatch are substantially higher in gateway cities, compared to both the gateway city native-born population, and non-gateway immigrants. An analysis of the data shows that only marginal improvements to economic well-being would result from an increase in non-gateway immigration, and that there are other factors, like race or skin colour, that seem to be more closely linked to labour market success.

The substitutability of labor between immigrants and natives in the Canadian labor market: circa 1995

This paper examines the substitutability or complementarity between Canadian-born and immigrant workers. These are examined by estimating a set of wage equations using a generalized Leontief production function. The paper finds that, in general, there is no displacement of Canadian-born workers by immigrants. Recent immigrants affect the native-born positively, while older immigrants are neither substitute nor complement for natives. However, the effects differ across industries. Overall, the evidence that immigrants harm the opportunities of native-born workers is scant.