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What Explains Immigrant-Native Gaps in European Labor Markets: The Role of Institutions

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  • Guzi, Martin

    (Masaryk University)

  • Kahanec, Martin

    (Central European University)

  • Kureková, Lucia Mýtna

    (Slovak Academy of Sciences)

Abstract

The role of institutions in immigrant integration remains underexplored in spite of its essential significance for integration policies. This paper adopts the Varieties of Capitalism framework to study the institutional determinants of Immigrant-Native gaps in host labor markets. Using the EU LFS we first measure immigrant-native gaps in labor force participation, unemployment, low-skilled employment and temporary employment. We distinguish the gaps that can be explained by immigrant-native differences in characteristics from those that cannot be explained by such differences, as these require different integration policy approaches. In the second stage we measure the effects of institutional and contextual variables on explained and unexplained immigrant-native gaps. Our findings confirm that institutional 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.

Suggested Citation

  • Guzi, Martin & Kahanec, Martin & Kureková, Lucia Mýtna, 2015. "What Explains Immigrant-Native Gaps in European Labor Markets: The Role of Institutions," IZA Discussion Papers 8847, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8847
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    References listed on IDEAS

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    Cited by:

    1. Andrej Cupák & Pavel Ciaian & d'Artis Kancs, 2021. "Comparing the immigrant-native pay gap: A novel evidence from home and host countries," EERI Research Paper Series EERI RP 2021/05, Economics and Econometrics Research Institute (EERI), Brussels.
    2. Martin Guzi & Martin Kahanec & Magdalena M. Ulceluse, 2021. "Europe's migration experience and its effects on economic inequality," MUNI ECON Working Papers 2021-05, Masaryk University, revised Feb 2023.
    3. Ademmer, Esther & Barslund, Mikkel & Benček, David & Di Salvo, Mattia & Groll, Dominik & Hoxhaj, Rezart & Kadkoy, Omar & Lanati, Mauro & Laurentsyeva, Nadzeya & Lücke, Matthias & Ludolph, Lars & Pizzu, 2018. "2018 MEDAM Assessment Report on Asylum and Migration Policies in Europe. Flexible Solidarity: A comprehensive strategy for asylum and immigration in the EU," MEDAM Assessment Report on Asylum and Migration Policies in Europe, Mercator Dialogue on Asylum and Migration (MEDAM), number 182240.
    4. Stefan Jestl & Michael Landesmann & Sebastian Leitner & Barbara Wanek-Zajic, 2022. "Trajectories of Employment Gaps of Refugees and Other Migrants: Evidence from Austria," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 41(2), pages 609-669, April.
    5. Stefan Jestl & Michael Landesmann & Sebastian Leitner & Barbara Wanek-Zajic, 2019. "Employment Gaps Between Refugees, Migrants and Natives: Evidence from Austrian Register Based Labour Market Data," wiiw Working Papers 167, The Vienna Institute for International Economic Studies, wiiw.
    6. Renate Ortlieb & Julian Winterheller, 2020. "Behind Migrant and Non‐Migrant Worktime Inequality in Europe: Institutional and Cultural Factors Explaining Differences," British Journal of Industrial Relations, London School of Economics, vol. 58(4), pages 785-815, December.
    7. Jesús Crespo Cuaresma & Peter Huber & Anna Raggl, 2015. "Reaping the Benefits of Migration in an Ageing Europe. WWWforEurope Policy Brief No. 7," WIFO Studies, WIFO, number 58161, March.
    8. Raffaele Guetto, 2018. "Employment Returns to Tertiary Education for Immigrants in Western Europe: Cross-Country Differences Before and After the Economic Crisis," Social Inclusion, Cogitatio Press, vol. 6(3), pages 64-77.

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    More about this item

    Keywords

    immigrant integration; integration policy; discrimination; labor market; Varieties of Capitalism;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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