What explains immigrant–native gaps in European labor markets: The role of institutions

Author:

Guzi Martin123ORCID,Kahanec Martin3456ORCID,Kureková Lucia Mýtna7ORCID

Affiliation:

1. Department of Public Economics, Masaryk University, Brno 60200, Czechia

2. IZA, Bonn 53113, Germany

3. CELSI, Bratislava 821 09, Slovakia

4. Department of Public Policy, Central European University, Vienna 1100, Austria

5. GLO, Maastricht 6211 AX, The Netherlands

6. Faculty of National Economy, University of Economics in Bratislava, Bratislava 85235, Slovakia

7. Centre of Social and Psychological Sciences, Institute of Forecasting, Slovak Academy of Sciences, Bratislava 811 05, Slovakia

Abstract

Abstract The understanding of how institutional and policy contexts affect immigrant integration is essential for any effort to foster a sustainable and effective migration and integration policy framework. Immigrant–native labor market gaps may arise not only due to differences in human capital or other socio-economic and demographic characteristics, but also due to differentiated impacts of institutions and policies on otherwise similar immigrants and natives. Different integration policy approaches are needed to close the gaps arising through these different mechanisms. This article exploits the variation across Europe to study the institutional and policy determinants of immigrant–native gaps in host labor markets. Using the EU Labor Force Survey as the primary source of data and a novel analytical approach, we study immigrant–native gaps in labor force participation, unemployment, low-skilled employment, and temporary employment and measure the contribution of institutional and policy contexts to the part of these gaps that cannot be explained by immigrant–native differences in characteristics. Our findings confirm that institutional and policy contexts play a significant role in immigrant integration and highlight the importance of tailoring policy approaches with regard to the causes of immigrant–native gaps.

Funder

Knowledge for Integration Governance

European Commission

Czech Science Foundation

European Commission through the Eduworks Marie Curie Initial Training Network Project

European Commission’s 7th Framework Program, Horizon 2020

MigrAtion Governance and asYlum Crises

Inequality and economic growth

Slovak Research and Development Agency

VEGA

Scientific Grant Agency of the Ministry of Education, Science, Research and Sports of the Slovak Republic, and the Slovak Academy of Sciences

Publisher

Oxford University Press (OUP)

Subject

Geography, Planning and Development,Demography

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