Employment, Wages, and the Economic Cycle: Differences between Immigrants and Natives
By Christian Dustmann, A. Glitz, T. Vogel. Social Science Research Network, 2009
242 citations recorded by the source corpus.
In this paper, we analyse differences in the cyclical pattern of employment and wages of immigrants and natives for two large immigrant receiving countries, Germany and the UK. We show that, despite large differences in their immigrant populations, there are similar and significant differences in cyclical responses between immigrants and natives in both countries, even conditional on education, age, and location. We decompose changes in outcomes into a secular trend and a business cycle component. We find significantly larger unemployment responses to economic shocks for low-skilled workers relative to high-skilled workers and for immigrants relative to natives within the same skill group. There is little evidence for differential wage responses to economic shocks. We offer three explanations for these findings: an equilibrium search model, where immigrants experience higher job separation rates, a model of dual labour markets, and differences in the complementarity of immigrants and natives to capital.
Subfields: Economics and Econometrics, Sociology and Political Science
View Paper: https://www.semanticscholar.org/paper/fdd968967fd264a6bd6b8bbe4d9b4bd982f57c4f
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Citations in the corpus
- Is There Less Discrimination in Occupations Where Recruitment Is Difficult? (2015, result): “This evidence for Belgium is in line with higher relative unemployment rates among ethnic minorities in economic downturns as found by Dustmann et al. (2010) and at least superficially consistent with higher discrimination rates in loose labor markets.”