Do Immigrants Suffer More From Job Loss? Unemployment and Subjective Well-being in Germany

This study asks whether immigrants suffer more from unemployment than German natives. Differences between these groups in pre-unemployment characteristics, the type of the transition into unemployment, and the consequences of this transition suggest that factors intensifying the negative impact of unemployment on subjective well-being are more concentrated in immigrants than in natives. Based on longitudinal data from the German Socio-Economic Panel Study (1990–2014; N = 34,767 persons aged 20 to 64; N = 210,930 person-years), we used fixed-effects models to trace within-person change in subjective well-being across the transition from employment into unemployment and over several years of continued unemployment. Results showed that immigrants’ average declines in subjective well-being exceeded those of natives. Further analyses revealed gender interactions. Among women, declines were smaller and similar among immigrants and natives. Among men, declines were larger and differed between immigrants and natives. Immigrant men showed the largest declines, amounting to one standard deviation of within-person change over time in subjective well-being. Normative, social, and economic factors did not explain these disproportionate declines. We discuss alternative explanations for why immigrant men are most vulnerable to the adverse effects of unemployment in Germany.     

Has immigration affected Spanish presidential elections results?

Between 1998 and 2008, the immigrant share in Spain jumped from less than 3 % to more than 13 %. We provide bounds on the effect of immigration inflows on natives’ election outcomes by considering alternative assumptions about nationalized immigrants’ participation rates and voting behavior. We find that Latin-American immigration increased natives’ participation rate and their support for the major leftist party (Socialist Workers’ Party) over the major conservative party (People’s Party (PP)). Conversely, African immigration only increased natives’ support for anti-immigration formations relative to the PP while leaving unaffected their participation rate. The estimated effects are of modest size in all cases. We provide suggestive evidence that economic factors cannot account for such a heterogeneity in the effects of interest by immigrants’ ethnic groups. We argue that Spanish natives’ attitudes towards immigrants are mainly driven by noneconomic factors like dissimilarities between natives and immigrants in language, religion, and race.     

The Patterns of Satisfaction Among Immigrants in Germany

Using the data from the German Socio-Economic Panel, the paper focuses on the analysis of life satisfaction and income satisfaction among immigrants in Germany. The results suggest that it cannot be argued that Germany’s immigrants are, ceteris paribus, more satisfied or less satisfied than natives, since some immigrant groups appear to be more satisfied, while others show lower satisfaction levels relative to natives. Separate estimations for natives and immigrants show that, even though the patterns of satisfaction for the two groups are largely similar, several notable differences emerge. The final goal was to take a closer look at the negative relationship between satisfaction and duration of stay in Germany. After constructing reference groups by the timing of arrival, the negative relationship between income satisfaction and years since migration is reduced substantially. On the other hand, the negative association between duration of stay and life satisfaction is persistent, regardless of the way the reference groups are defined.     

Comparing Life Satisfaction of Immigrants and Natives Across Europe: The Role of Social Contacts

Research on immigrants’ assimilation is widespread both in the U.S. and Europe. While it has been extensively studied how immigrants fare compared to natives on socio-economic indicators, few studies have focussed on immigrants’ perception of their position. In this paper we focus on comparing life satisfaction of immigrants and natives across Europe and on the role of social embeddedness. Using data from the first six rounds (2002–2012) of the European Social Survey, a repeated cross-sectional survey, we find that life satisfaction among immigrants is lower than among natives even though differences diminish over generations. For first generation immigrants part of the life satisfaction gap is explained by the lower level of social embeddedness they have compared to natives. We also find that social embeddedness is a key explanatory factor for life satisfaction for both immigrants and natives. For two out of the three indicators of social embeddedness that we consider we however find different patterns of association with life satisfaction for immigrants compared to natives.     

Ethnic identity, majority norms, and the native–immigrant employment gap

Earlier studies do not agree on whether ethnic identity, i.e., immigrants’ attachment to the home country and the host country, can explain lower employment outcomes among immigrants. This study investigates the relationship between employment and ethnic identity and complements the literature by capturing a novel dimension of ethnic identity: openness to majority norms. Reproducing measures from earlier studies, I find that immigrants’ employment outcomes do not systematically associate with their ethnic identity. However, immigrants who share social norms with the majority experience significantly better employment outcomes, particularly first-generation immigrant women. Furthermore, I show that interethnic differentials in majority norms could account for up to 20 % of the explained part of the employment gap between natives and first-generation immigrants. Those results shed more light on the interethnic employment gap and aspects of immigrants’ identity relevant to economic integration.     

Immigrants’ Sense of Belonging to the Host Country: The Role of Life Satisfaction,Language Proficiency,and Religious Motives

This paper focuses on a significant concept in migration studies: immigrants’ sense of belonging to the host society. Drawing upon the literature of immigration and subjective well-being, we proposed a model in which life satisfaction is a major predictor of immigrants’ sense of belonging, and is explained by background variables including religious affiliation, religious motivation, native language proficiency and ethnic segregation. The study was based on a survey of two groups of highly skilled migrants in Israel; immigrants from France and the Former Soviet Union who moved to Israel in the last two decades. The findings suggest that, as expected, life satisfaction had a significant influence on immigrants’ sense of belonging and served as a mediator variable in the model. Whereas ethnic segregation was not found to be a significant parameter in the model, religious motivation and Hebrew language proficiency were found to be prominent. In light of the literature, we also discuss the importance of religious motivations to immigrants’ subjective well-being, identity, and sense of belonging.

     

Migration background and educational tracking

Research on immigrants’ educational disadvantages documents substantial immigrant–native achievement gaps in standardized student assessments. Exploiting data from the German PIRLS extension, we find that second-generation immigrants also receive worse grades and teacher recommendations for secondary school tracks than natives, which cannot be explained by differences in student achievement tests and general intelligence. Second-generation immigrants’ less favorable socioeconomic background largely accounts for this additional disadvantage, suggesting that immigrants are disproportionately affected by prevailing social inequalities at the transition to secondary school. We additionally show that differences in track attendance account for a substantial part of the immigrant–native wage gap in Germany.     

Social networks and the labour market mismatch

This paper assesses the extent to which social contacts and ethnic concentration affect the education-occupation mismatch of natives and immigrants. Using Australian panel data and employing a dynamic random effects probit model, we show that social capital exacerbates the incidence of over-education, particularly for females. Furthermore, for the foreign born, ethnic concentration significantly increases the incidence of over-education. Using an Alternative Index, we also show that social participation, friends and support and ethnic concentration are the main contributors in generating a mismatch, while reciprocity and trust does not seem to have any effect on over-education for both, immigrants and natives. Finally, we show that social networks are more beneficial for the relatively better educated.     

Ethnic Enclaves and the Earnings of Immigrants

A large literature in sociology concerns the implications of immigrants’ participation in ethnic enclaves for their economic and social well-being. The “enclave thesis” speculates that immigrants benefit from working in ethnic enclaves. Previous research concerning the effects of enclave participation on immigrants’ economic outcomes has come to mixed conclusions as to whether enclave effects are positive or negative. In this article, we seek to extend and improve upon past work by formulating testable hypotheses based on the enclave thesis and testing them with data from the 2003 New Immigrant Survey (NIS), employing both residence-based and workplace-based measures of the ethnic enclave. We compare the economic outcomes of immigrants working in ethnic enclaves with those of immigrants working in the mainstream economy. Our research yields minimal support for the enclave thesis. Our results further indicate that for some immigrant groups, ethnic enclave participation actually has a negative effect on economic outcomes.     

The Subjective Well-Being of Immigrants: Pre- and Post-migration

In recent years, migration studies have increasingly shown that subjective well-being carries considerable weight in immigrant integration. Yet little is known about the subjective well-being of immigrants in their origin country (pre-migration) or its relation to their well-being in the host country. This paper examines the relationship between subjective well-being, both pre- and post-immigration, among North Americans who arrived in Israel during the past two decades. The study combines both quantitative and qualitative research methods. According to our quantitative findings, the labor market performance of North American immigrants in Israel is lower than in their origin countries. Further, we learned from the qualitative analysis that although the immigrants’ positions in the labor market were better in their origin countries, the immigrants perceived their standard of living in Israel to be the same as in their origin country—if not better—due to the low cost of services in Israel. The importance of the immigrant’s satisfaction from the current job in Israel was apparent in the findings of both methods. We also found that the subjective well-being of North American immigrants in Israel is relatively high, and most immigrants did not consider leaving Israel. The subjective well-being of the immigrants in Israel was found to be related to their social networks in their origin country, to their religious immigration motive and to their work satisfaction in Israel. The more supportive the immigrants’ families were of their decision to immigrate, the less the immigrants tended to consider leaving Israel. Immigrants with a religious motivation for immigrating to Israel were less inclined to leave, and the same was true for immigrants who were satisfied with their work in Israel. The qualitative data added important perspective on the immigrants’ social networks, this time in Israel. Interviewees reported having more supportive social networks in Israel, and a greater sense of community, although most of their contacts were within the Anglo community.     

Immigration and Natives’ Attitudes towards the Welfare State: Evidence from the European Social Survey

Does immigration reduce natives’ support for the welfare state? Evidence from the European Social Survey (2002/2003) suggests a more qualified relation. For Europe as a whole, there is only weak evidence of a negative association between the perceived presence of immigrants and natives’ support for the welfare state. However, this weak average relationship masks considerable heterogeneity across countries. We distinguish two channels through which immigration could affect natives’ support for the welfare state: a pure dislike of immigrants and concerns about the economic consequences of immigration. We find that natives who hold both negative views react much more negatively to a given perceived share of immigrants than natives who hold neither view. However, there is no clear pattern concerning the relative importance of the two channels. Finally, we find that natives who hold either of these negative views of immigrants tend to be less supportive of the welfare state independently of the perceived presence of immigrants.     

The impact of U.S. immigration upon internal migration

The potential adverse effect of immigrants on job opportunities for natives continues to influence debate about immigration policy in the United States. Many studies have examined wage and employment outcomes; by contrast, we examine internal migration. We ask whether or not natives are more likely to depart from or less likely to move to metropolitan areas with high concentrations of immigrants. After controlling for other influences on migration, we find that metropolitan areas with higher concentrations of immigrants have only slightly lower rates of inmigration of natives. Such metropolitan areas also exhibit slightly lower rates of out-migration, contrary to expectation. These results suggest that the effect of immigrants on labor market redistribution of natives is modest.Research reported here was supported by a grant from the Alfred P. Sloan Foundation. We would like to thank Kofi Benefo for helpful comments.     

Immigrant School Segregation in Sweden

Recent research has shown that there is a substantial skill difference in Sweden between natives and second-generation immigrants. The objective of this study is to find out whether there exists a relationship between immigrant school segregation and the individual’s human capital. The variation in immigrant concentration rate between cohorts within a school generally does not affect the individual’s human capital outcome. However when estimating specific peer influences between different immigrant groups (first-generation immigrants, second-generation immigrants with two foreign-born parent and second-generation immigrants with one foreign-born parent) the study shows three major findings. First, for men (both natives and second-generation immigrants) there is a general negative effect of having a large share of first-generation immigrant schoolmates. Second, for both men and women a large share of schoolmates with a completely foreign background (non-native parents) has a negative influence on the Swedish grades of second-generation immigrants with two foreign-born parents. Third, for men there seem to exist specific and positive peer influences within the groups of second-generation immigrants with either one or two foreign-born parents.     

Immigration and product diversity

We study the effects of immigration on the diversity of consumption choices. Data from California in the 1990s indicate that immigration is associated with fewer stand-alone retail stores and a greater number of large and in particular big-box retailers—evidence that likely contradicts a diversity-enhancing effect of immigration. In contrast, focusing on the restaurant sector for which we can better identify the types of products consumed by customers, we find that immigration is associated with increased ethnic diversity of restaurants. This latter effect appears to come in part from the comparative advantage of immigrants in the production of ethnic goods.     

The incidence of subminimum pay among native and immigrant workers

This paper econometrically compares the subminimum wage propensities of immigrants and US natives using 1989 microdata. A conventional expectation is that immigrants are more likely to earn subminimum wages because of their lesser education and knowledge of labor rights. However, immigrants also tend to participate full time in the labor market and field studies suggest they provide employers an 'experienced' labor pool. Indeed, our findings indicate that immigrants by age, sex, and race/ethnic group are less likely than natives to receive subminimum wages. These findings imply that the foreign born do not contribute disproportionately to the informal economy.     

Estimating Diversity Effects in the Neighborhood: On the Role of Ethnic Diversity and Out-group Size and their Associations with Neighborhood Cohesion and Fear of Crime

This study considers and simultaneously tests the role of ethnic diversity and out-group size in relation to individuals’ perceptions of neighborhood cohesion and fear of crime among natives in Dutch neighborhoods. We challenge the way the impact of diversity has been studied previously and propose an alternative measure to examine diversity effects. This results in a better understanding of how and why the ethnic composition of a neighborhood may impact levels of cohesion and fear, and thereby contributes to the literature on the societal effects of ethnic diversity. In addition, attention is paid to the association between cohesion and fear and whether neighborhood cohesion mediates the relationship between ethnic diversity and fear of crime. We apply multilevel equation modeling techniques to analyze the different relationships and use data of the Dutch Safety Monitor (N?=?71,760) in combination with detailed register data. Our study is one of the first to detect a diversity effect on cohesion based on the modified diversity measure. We do not find support for the hypothesized diversity effect on fear of crime. Lastly, out-group size turned out to decrease cohesion and increase fear.

     

Labor Market Segmentation and the Earnings of German Guestworkers

In this paper we study the occupational progress and earnings attainment of immigrants in Germany and compare them to native Germans. Our analysis is guided by the human capital, segmented labor market, and discrimination theories. To assess the separate effects of occupational segmentation and discrimination in the allocation of occupations and wages, we conceptualize the process of earnings attainment as occurring in three stages: initial occupational achievement, final occupational achievement after the accumulation of experience, and, contingent on the former, final earnings attainment. Our analysis of data from the German Socioeconomic Panel suggests a high degree of initial occupational segmentation, with mmigrants being less able to translate their human capital into a good first job than natives. We also find that immigrants experienced significant discrimination in the process of occupational attainment, yielding little job mobility over time, and a widening of the status gap between Germans and guestworkers. Holding occupational status constant, however, we find less evidence of direct discrimination in the process of earnings attainment. Although immigrants achieved lower rates of return to technical or vocational training than natives, their wage returns to experience, hours worked, years since migration, and academic high school were greater, yielding significant earnings mobility over time.     

Quality of Post-1965 Asian Immigrants

The reliance on an overall average approach to the labor market quality of immigrants could generate misleading information and biased policy recommendations. Focusing on Asian immigrants, this article demonstrates that much insight into immigrant quality can be gained via a diversity approach. Using the 5% PUMS data of the 1990 U.S. census, this paper shows that a common perception that the quality of post-1965 immigrants is lower than natives and earlier immigrants is invalid for post-1965 Asian immigrants. Unlike their Latin American counterparts, post-1965 Asian immigrants are generally more educated and skilled than natives. The educational level of post-1965 Asian immigrants surpasses that of their pre-1965 counterparts, despite their disadvantage in occupational attainment due to their shorter time of adaptation. Diversity also characterizes educational and occupational attainment across major post-1965 Asian immigrant groups and within each Asian immigrant group before and after 1965. Gender does not alter the advantage of post-1965 Asian immigrants over natives and their pre-1965 parallels in education, but it does complicate their occupational status. Policy implications of the findings are considered.     

Immigrants in the UK and in West Germany –Relative income position,income portfolio,and redistribution effects

Based on data from the BHPS and the SOEP, we analyse the economic performance of various ethnic groups in the UK and West Germany, as well as the effects of income redistribution on these populations. Taking the indigenous population of each country as the reference category, we find that, as a whole, the non-indigenous population in the UK fares much better than the immigrant population in Germany. However, the range of economic performance across different ethnic groups in the UK is much larger than that in Germany. The German corporatist welfare system is characterised by much stronger redistribution effects than the liberal UK one. Consequently, the relatively low-performing immigrant population in Germany profits more from the redistribution system than immigrants with similar socio-economic attributes in the UK.All correspondence to Felix Büchel. Responsible editor: Christoph M. Schmidt