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

35 Pages Posted: 14 Feb 2015

See all articles by Martin Guzi

Martin Guzi

Masaryk University; Central European Labour Studies Institute (CELSI); IZA Institute of Labor Economics

Martin Kahanec

IZA Institute of Labor Economics; Central European University; Central European Labour Studies Institute

Lucia Mytna Kurekova

Slovak Governance Institute; Central European University

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.

Keywords: labor market, discrimination, integration policy, immigrant integration, Varieties of Capitalism

JEL Classification: J15, J18, J61

Suggested Citation

Guzi, Martin and Kahanec, Martin and Mytna Kurekova, Lucia, What Explains Immigrant-Native Gaps in European Labor Markets: The Role of Institutions. IZA Discussion Paper No. 8847. Available at SSRN: https://ssrn.com/abstract=2564980

Martin Guzi (Contact Author)

Masaryk University ( email )

Lipova 41a
Brno, 60200
Czech Republic
+420549496766 (Phone)

HOME PAGE: http://www.muni.cz/econ/people/233611

Central European Labour Studies Institute (CELSI)

Zvolenská 29
Bratislava, 82109
Slovakia

IZA Institute of Labor Economics ( email )

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

HOME PAGE: http://legacy.iza.org/en/webcontent/personnel/photos/index_html?key=5347

Martin Kahanec

IZA Institute of Labor Economics ( email )

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

Central European University ( email )

Nador utca 9
Budapest, H-1051
Hungary

Central European Labour Studies Institute ( email )

Zvolenská 29
Bratislava, 82109
Slovakia

HOME PAGE: http://www.celsi.sk

Lucia Mytna Kurekova

Slovak Governance Institute ( email )

Gajova 4
Bratislava, 81109
Slovakia

Central European University ( email )

Nador utca 9
Budapest, H-1051
Hungary

Register to save articles to
your library

Register

Paper statistics

Downloads
72
Abstract Views
323
rank
324,613
PlumX Metrics