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

Abstract

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. Terms of use: Documents in AbstractIn 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.

The threat effect of participation in active labor market programs on job search behavior of migrants in Germany

“…One would therefore like to have access to a larger sample of migrants from a specific region of origin. Moreover, following Constant et al (2010a), one may extend the theoretical job-search framework by including behavioral-economic concepts. Notes: CEER stands for Central and Eastern Europe, Russia and former Yugoslavia.…”

Pure ethnic gaps in educational attainment and school to work transitions: When do they arise?

“…First, the pure ethnic gap may partly be caused by ethnic differences in preferences or expectations. Constant et al (2010) provide evidence on divergence in economic preferences and attitudes between natives and second generation migrants in Germany. Migrants are found to be, for instance, less risk-averse.…”

The IZA evaluation dataset survey: a scientific use file

“…8 Constant et al (2010) Analysis of reservation wages of first and second generation migrants Second generation migrants have higher reservation wages than first generation migrants as they tend to refer to the wage level within the host county, instead of the country of origin 9 Constant et al (2011b) Comparison of second generation migrants and natives with respect to the economic impact of attitudes and risk preferences Differences in attitudes and risk preferences explain lower employment probabilities among second generation migrants studies on ex ante effects of ALMP programs) the perceived probability to participate in an ALMP program affect job search behavior and consequently the transition to employment. Caliendo and Lee (2013) use information on the weight of job seekers to test the hypothesis that overweight individuals behave or are treated differently during job search compared to normal weight individuals.…”

“…Indeed, they find higher reservation wages for second generation migrants, which might explain the persistence of the nativemigrant gap in economic outcomes, although second generation migrant catch up in terms of educational attainment. Constant et al (2011b) extend the analysis of second generation migrants and compare them to natives in order to understand the persistence of the native-migrant gap. They find considerable differences in terms of attitudes and risk preferences, which however, do not explain lower employment probabilities among second generation migrants.…”