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.     

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.     

Are Migrants Going Up a Blind Alley? Economic Migration and Life Satisfaction around the World: Cross-National Evidence from Europe, North America and Australia

Are migrants satisfied with their decision to move to another country? Research shows that the income-wellbeing relationship is weak in wealthy countries, usually countries of destination. Are then economic migrants mistaken? Employing data from the Gallup World Poll, a representative sample of the world population, we investigate whether a general pattern of association exists between income and the cognitive component of subjective wellbeing, and whether this pattern differs by immigration status in 16 high-income countries. In only a handful of countries do we find a distinctive immigrant advantage in translating income into higher life evaluation or life satisfaction: Australia, Belgium, the Netherlands, Portugal and Sweden. For immigrants in most of these countries, income increases cognitive wellbeing even in the fifth income quintile. Depending on the measure used, immigrants in Canada, Denmark, Finland, Italy and the US only have positive income-wellbeing associations at or below the third quintile. We take this as evidence that, among recent arrivals, income is positively associated with wellbeing up to the point in which non-pecuniary factors associated with long-term residence become dominant. We also find a number of “frustrated achievers” among the foreign born in the US, France and Finland. These immigrants report a negative association, in absolute value, between income and life satisfaction or life evaluation.     

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.     

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.     

Life Satisfaction Among Turkish and Moroccan Immigrants in the Netherlands: The Role of Absolute and Relative Income

In this paper we investigate the role of several socio-economic and non-economic factors such as absolute and relative income, education and religion to explain the differences of happiness levels of Turkish and Moroccan Immigrants in the Netherlands by using ordered logit model. We focus on members of the Moroccan and Turkish communities, as these are the two largest non-EU immigrant communities in the Netherlands. Our findings reveal that Moroccans, although they have lower income levels and higher unemployment rates than Turkish immigrants, their happiness level is higher than the Turkish immigrants. In order to understand this dilemma a questionnaire survey was performed to 111 Turkish and 96 Moroccan immigrants in Rotterdam, Amsterdam, Den Haag, Utrecht and Arnhem in 2010. The main purpose is to investigate how reference group’s self-reported life satisfaction is related to the level of absolute income; the level of relative income and other socio-economic factors. The main findings are that for Turkish sample relative income is significantly and negatively correlated with life satisfaction whereas, both absolute income (positively) and relative income (negatively) are significantly correlated with life satisfaction for Moroccan case.     

Life Satisfaction Among Ethnic Minorities: The Role of Discrimination and Group Identification

For most immigrants and ethnic minority groups, everyday life in the country of settlement raises question of adaptation and belonging. Aside from factors such as lower income, lower education and poorer health, being an ethnic minority member carries additional factors that can lower general life satisfaction. Using data from two studies the present paper shows that ethnic minority group members (Turkish-Dutch) have lower general life satisfaction than a comparable majority group (Dutch) because they are less satisfied with their life in the country of settlement. In addition, Study 2 showed that higher perceived structural discrimination was associated with lower life satisfaction in the country of settlement, but also with higher ethnic group identification that, in turn, made a positive contribution to general life satisfaction.     

Personal Values as Mitigating Factors in the Link Between Income and Life Satisfaction: Evidence from the European Social Survey

Using data from the first two rounds of the European Social Survey, we examine the link between income, reference income and life satisfaction across Western Europe. We find that whilst there is a strong positive relationship between income and life satisfaction, reference or comparison income exerts a strong negative influence. Interestingly, our results confirm the importance of personal values and beliefs not only as predictors of subjective well-being, but also as mitigating factors in the relationship between income, reference income and life satisfaction. While our findings provide additional empirical support for the relative utility hypothesis, they are also consistent with Rojas’ (J Econ Psychol 28:1–14, 2007) Conceptual-Referent-Theory (CRT), which is based on the premise that the salience of income and comparison income depends on one’s intrinsic values and personal beliefs.

Which Inequality Makes People Dissatisfied with Their Lives? Evidence of the Link Between Life Satisfaction and Inequalities

This paper aims at establishing a clear link between different types of inequality and life satisfaction in Europe. We analyse the relationship between life satisfaction and both income inequality and inequality of opportunity using seven waves of the European Social Survey. The results show that in Europe both income inequality and inequality of opportunity reduce people’s life satisfaction. Our main results suggest that all socio-economic groups are dissatisfied with income inequality, whereas primarily low socio-economic individuals worry about inequality of opportunity. We find that expected mobility is very important in explaining the link between inequality and life satisfaction for all socio-economic groups in Europe. We advance the hypothesis that life satisfaction is conditioned by a mix of normative arguments against inequality and by the fear/possibility to lose/gain a good social position. This result complements findings on the mediating role of social mobility in the relationship with subjective well-being.     

Labour-market status and first-time parenthood: the experience of immigrant women in Sweden, 1981-97

This paper investigates the impact of labour-market attachment on first births of foreign-born women in Sweden. The study uses a longitudinal, register-based dataset consisting of the entire population of immigrants from ten nations and a 5-per-cent random sample of natives. The effects of earned income are evident, with increased income levels increasing the probability of becoming a mother for all observed nationalities. The effects of various forms of participation and non-participation in the labour force do not vary greatly between immigrants and the Swedish-born. Among all subgroups, we find a higher propensity to begin childbearing among those who are established in the labour market. Contrary to popular belief, receiving welfare benefits clearly reduces first-birth intensity for immigrants but not for natives. The similarity in patterns across widely different national groups supports the notion that various institutional factors affecting all subgroups are crucial in influencing childbearing behaviour.     

Determinants of Life Satisfaction Among Immigrants from Western Countries and from the FSU in Israel

This study examines the integration of immigrants via their satisfaction with life in the new country. While most studies on immigrant integration have focused on objective integration parameters such as education, occupation and salary (e.g., Borjas in Friends or strangers: the impact of immigrants on the US economy. Basic Books, New York, 1990), subjective parameters have traditionally received less attention. However, in recent years it has become increasingly clear that subjective perceptions carry considerable weight in the social-integration process of immigrants (McMichael and Manderson in Human Organ 63(1):88–99, 2004; Massey and Redstone in Soc Sci Q 87(5):954–971, 2006). The study group consists of Jewish immigrants who arrived in Israel during the past two decades from two different regions of origin: Western countries, and the Former Soviet Union (FSU). All of these immigrants are generally highly educated and skilled, but they came to Israel from different societies and contrasting motives. The objective of this study is to learn about the integration of these immigrants via their satisfaction with life in Israel and to understand the factors that explain it, taking into account the differences between the immigrant groups. The findings, based on the 2007 Ruppin representative survey data (The data for this study was obtained with the support of the Israeli Ministry of Immigrant Absorption.), point to significant differences between the two immigrant groups under discussion. Western immigrants are more satisfied with their lives in Israel than FSU immigrants and have higher scores in most of the independent variables tested. The multivariate analyses for predicting an immigrant’s life satisfaction reveal that those reporting the greatest satisfaction are women, religious, with a high standard of living, with no academic education, and stronger Israeli identity (personal and as perceived by others). In addition, different variables play a role in predicting the life satisfaction for each immigrant group. This knowledge may be of service to Israeli policymakers dealing with the immigration and integration of highly skilled immigrants in Israeli society.     

Ethnic diversity and well-being

This paper investigates how ethnic diversity, measured by immigrants’ nationalities, influences the well-being of the host country. Using panel data from Germany from 1998 to 2012, we find a positive effect of ethnic diversity on the well-being of German natives. Our finding is robust to alternative definitions of ethnic diversity and to the non-random selection of natives and immigrants into regions. The positive effect of ethnic diversity is stronger for immigrant groups that are culturally and economically closer to Germany. Consistent with this result, we document the existence of two mechanisms explaining the influence of ethnic diversity on well-being: productivity—as captured by immigrants’ skills and assimilation—and social capital—particularly in relation to the creation of a multicultural environment.     

Education as a Positional Good: A Life Satisfaction Approach

In this paper we empirically investigate the direct effects of education on utility. Besides investment aspects of education, the focus is placed on its consumption component and on education positional concerns. We use data from the World Values Survey (WVS) and adopt a life satisfaction approach. First, we find that education shows a significant effect on life satisfaction independent of its effect on income, thus identifying a consumption component of education. Furthermore, given that the contribution of education to individual wellbeing might depend partly on relative position rather than absolute levels, we next study whether education can be considered as a positional good. To this end we analyse the relationship between education and life satisfaction for people in different income groups in which the reference levels of education may differ. Additionally, we control for occupational status since benefits from education could appear via occupational benefits. Our results indicate that the contribution of education to subjective wellbeing is stronger as less people attain a given level of education, thus suggesting that this contribution is partly due to positional concerns.     

The savings behavior of temporary and permanent migrants in Germany

This paper examines the relative savings position of migrant households in West Germany paying particular attention to differences between temporary and permanent migrants. Our findings reveal significant differences in the savings rates between German natives and immigrants. If remittances are treated as savings, however, migrants who intend to return to their home country save significantly more than comparable natives. The results of a decomposition analysis indicate that slightly more than half of the differences in the savings rate between Germans and permanent migrants and almost 70% between temporary and permanent migrants can be attributed to differences in observable characteristics.     

Does Human Capital Raise Earnings for Immigrants in the Low-Skill Labor Market?

We use monthly Survey of Income and Program Participation data from 1996–1999 and 2001–2003 to estimate the determinants of differentiation in intercepts and slopes for age/earnings profiles of low-skill immigrant and native male workers. Our findings provide further depth of understanding to the“mixed” picture of earnings determination in the low-skill labor market that has been reported by others. On the positive side, many immigrants are employed in similar occupations and industries as natives. Both groups show substantial wage gains over time and generally receive similar returns to years of schooling completed. Immigrants also receive substantial returns to acculturation, measured as age at arrival and English language skill. These results cast doubt on the strong version of segmented labor market theory, in which low-skill immigrants are permanently consigned to dead-end jobs with no wage appreciation. On the negative side, immigrants earn approximately 24% less than natives and are less likely to occupy supervisory and managerial jobs. Latino immigrants receive lower returns to education than do white immigrants. Furthermore, age at arrival and language ability do not explain the lower returns to education experienced by Latino immigrants. These results suggest that Latino immigrants in particular may suffer from barriers to mobility and/or wage discrimination. Whether these negative labor market experiences occur primarily for illegal immigrants remains unknown.     

Mediating Effects of Affect and Loneliness on the Relationship Between Core Self-evaluation and Life Satisfaction Among Two Groups of Chinese Adolescents

This study examined the mediating effects of affect (positive and negative affect) and loneliness on the relationship between core self-evaluations (CSE) and life satisfaction among two groups of Chinese adolescents. Three hundred adolescents (169 males and 131 females) from Shenzhen and Xi’an in China completed the Core Self-evaluations Scale, Positive and Negative Affect Scale, UCLA Loneliness and Satisfaction with Life Scale. Research revealed that positive and negative affect, and loneliness fully mediated the relationship between CSE and life satisfaction. The relationship between CSE and loneliness was partially mediated by positive and negative affect. Loneliness partially mediated the relation between positive and negative affect and life satisfaction. The final model also indicated two significant paths from CSE through positive and negative affect and loneliness to life satisfaction. Furthermore, a multi-group analysis found that the paths did not differ across gender. Limitations of the study are considered and implications of the results for enhancing adolescents’ life satisfaction are discussed.     

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.     

Immigrants' welfare use and opportunity for contact with co-ethnics

In this article we examine the relationship between immigrants' welfare use and their social capital, using the 1990 census. We measure community social capital using contact with co-ethnics and co-ethnics' economic inactivity, and examine the use of AFDC and SSI in two subpopulations: single-mother families and elderly units. Major findings are that the effects of social capital differ between immigrant single-mother families and elderly units; the effects of social capital differ between the young-at-arrival elderly and the old-at-arrival elderly; and the process of AFDC use is similar for immigrants and for natives, whereas the process of SSI use is more complicated for immigrants than for natives.