The relation between citizenship and labor market position is complex. Besides a causal impact from citizenship towards labor market position, several selection mechanisms may cause particular immigrants to choose for naturalization. We investigate the empirical relation on the basis of German and Dutch survey data. For the Netherlands we find a positive relation between citizenship and labor market position, while for Germany we find mixed results as citizenship is negatively related to tenured employment. The contrasting results may be explained by institutional differences. In Germany, economic self‐reliance is more strictly required for naturalization than in the Netherlands. This may lead to a stronger incentive to naturalize for workers with a temporary contract in Germany.

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

No abstract

Employing methods extracted from the literature, in combination with data on the Dutch economy, we assess the impact of immigration on the labour market and the public sector in the Netherlands. Additional labour supply due to immigration will have only a limited positive effect on the total income of natives, though redistribution between native groups is relatively large. The long run fiscal impact of immigrants will only be positive if their labour market performance at least equals that of natives. We conclude that selective labour immigration may contribute to the economic well-being of the host country. However, large-scale immigration of labour is not considered to be effective in alleviating the financial burden of ageing in the Netherlands.