Institutions and structures as barriers? A comparison of native‐born and immigrant unemployment durations across 12 European countries

Abstract

This study investigated the effect of institutions on the unemployment duration gap between non‐EU immigrants and native‐born in 12 European countries. Going further than the existing literature, our study encompassed unemployment duration, distinguishing between exits to inactivity, primary and secondary employment. Additionally, we have provided a stronger micro‐foundation to the comparative literature by introducing institutional measures for unemployment‐related benefits at the individual level rather than merely using aggregate proxies. Our analysis found no disincentive effects of benefits for immigrants. Furthermore, the employment prospects of immigrants were better when the demand for low‐skilled labour was high, and immigration policy was labour market‐oriented. In contrast, employment protection legislation did not affect the unemployment duration of immigrants.

Migrants’ Attitudes and the Welfare State

“…Many of these studies have analysed the impact of welfare state and labour market arrangements on the socio-economic position of migrants. This includes studies of whether comprehensive and generous welfare states pose a problem for successful socio-economic incorporation of newcomers in various domains, such as the labour market, segregation, and crime (Diop-Christensen & Pavlopoulos, 2016;Dörr & Faist, 1997;Kogan, 2006;Koopmans, 2010;Van Tubergen, Maas, & Flap, 2004). Another contribution from European migration scholars has been labelled the comparative integration context theory (Alba & Foner, 2015;Crul, 2013;Heath, Rothon, & Kilpi, 2008).…”

How immigration affects the welfare state in the short and long run: Differences between social spending and policy generosity

“…These disadvantages show in labor market participation rates. Foreign‐born residents often have significantly lower employment rates and higher unemployment rates than their native counterparts (Burgoon, 2014, 367; see also Auer et al, 2017; Diop‐Christensen & Pavlopoulos, 2016; Gorodzeisky & Semyonov, 2017).…”

Migrants and Welfare States

“…Since a lag of one year is insufficient to account for this problem (see Neumayer, 2004;Brekke et al, 2017), we include the lagged (the last 2 to 4 years) average size of the refugee stock using annual dyadic data from UNHCR. We also include lagged migrant unemployment rates instead of general unemployment rates, as the labour market situation of migrants often differs significantly from that of natives (Kogan, 2006;Diop-Christensen and Pavlopoulos, 2016). Asylum seekers may be more inclined to choose countries where the diaspora has a successful labour market integration.…”