Economic Preferences and Attitudes of the Unemployed: Are Natives and Second Generation Migrants Alike?

31 Pages Posted: 31 Jan 2011

See all articles by Amelie F. Constant

Amelie F. Constant

Princeton University; UNU-MERIT; CESifo

Annabelle Krause-Pilatus

IZA Institute of Labor Economics

Ulf Rinne

IZA Institute of Labor Economics

Klaus F. Zimmermann

Global Labor Organization (GLO); UNU-MERIT; Maastricht University, Department of Economics; Free University Berlin; University of Bonn; Centre for Economic Policy Research (CEPR); Journal of Population Economics

Multiple version iconThere are 3 versions of this paper

Date Written: January 2011

Abstract

In this paper we study the economic effects of risk attitudes, time preferences, trust and reciprocity while we compare natives and second generation migrants. We analyze an inflow sample into unemployment in Germany, and find differences between the two groups mainly in terms of risk attitudes and positive reciprocity. Second generation migrants have a significantly higher willingness to take risks and they are less likely to have a low amount of positive reciprocity when compared to natives. We also find that these differences matter in terms of economic outcomes, and more specifically in terms of the employment probability about two months after unemployment entry. We observe a significantly lower employment probability for individuals with a high willingness to take risks. Some evidence suggests that this result is channeled through reservation wages and search intensity.

Keywords: migration, personality traits, reciprocity, risk attitudes, time preferences, trust, unemployment

JEL Classification: F22, J15, J61, J64

Suggested Citation

Constant, Amelie F. and Krause-Pilatus, Annabelle and Rinne, Ulf and Zimmermann, Klaus F., Economic Preferences and Attitudes of the Unemployed: Are Natives and Second Generation Migrants Alike? (January 2011). CEPR Discussion Paper No. DP8207, Available at SSRN: https://ssrn.com/abstract=1749848

Amelie F. Constant (Contact Author)

Princeton University ( email )

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UNU-MERIT ( email )

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CESifo ( email )

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Annabelle Krause-Pilatus

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Ulf Rinne

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

HOME PAGE: http://www.iza.org/profile?key=1844

Klaus F. Zimmermann

Global Labor Organization (GLO) ( email )

Bonn
Germany

HOME PAGE: http://https://glabor.org/

UNU-MERIT ( email )

Keizer Karelplein 19
Maastricht, 6211TC
Netherlands

Maastricht University, Department of Economics ( email )

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Maastricht, 6200MD
Netherlands

University of Bonn

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Bonn, D-53012
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Journal of Population Economics

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