Differences in labour market outcomes between immigrant and UK‐born employees: evidence from linked data

Chapter 1 Introduction What Economics Is About Uses of Economic Theory The Scope of Economics Individuals, Families, and Households A Note on Terminology Outline of the Book Appendix: A Review of Supply and Demand in the Labor Market Chapter 2 Women and Men: Historical Perspectives The Source of Gender Differences: Nature versus Nurture-The Ongoing Debate Factors Influencing Women's Relative Status Women's Roles and Economic Development The U.S. Experience Chapter 3 The Family as an Economic Unit: Theoretical Perspectives The Simple Neoclassical Model: Specialization and Exchange Disadvantages of Specialization Advantages of Families Beyond Specialization Transaction Cost and Bargaining Approaches Appendix: Specialization and Exchange: A Graphical Analysis Chapter 4 The Family as an Economic Unit: Evidence Time Spent in Nonmarket Work Estimating the Value of Nonmarket Production The American Family in the Twenty-First Century Chapter 5 The Labor Force: Definitions and Trends The Labor Force: Some Definitions Trends in Labor Force Participation Trends in Labor Force Attachment of Women Trends in Hours Worked Trends in Gender Differences in Unemployment Chapter 6 The Labor Supply Decision The Labor Supply Decision Some Applications of the Theory: Taxes, Child Care Costs, and Labor Supply Analyzing the Long-term Growth in Women's Labor Force Participation Recent Trends in Women's Labor Force Participation: Has the Engine of Growth Stalled? Analyzing Trends in Men's Labor Force Participation Black and White Participation Differentials: Serious Employment Problems for Black Men Appendix: The Income and Substitution Effects: A Closer Look Chapter 7 Evidence on Gender Differences in Labor Market Outcomes Gender Differences in Occupations The Gender Pay Ratio Gender Differences in Union Membership Gender Differences in Self-Employment Gender Differences in Nonstandard Work Chapter 8 Gender Differences in Educational Attainment: Theory and Evidence Chapter Highlights Supply and Demand Explanations: An Overview What Is Human Capital? Evidence on Gender Differences in Educational Attainment The Educational Investment Decision The Rising College Wage Premium Education and Productivity Gender Differences in Educational Investment Decisions: the Human Capital Explanation Gender Differences in Educational Investment Decisions: Social Influences and Anticipation of Discrimination Policy Issues: Title IX-Sports, Academics, and the Status of Single-Sex Education Explaining Women's Rising Educational Attainment Chapter 9 Other Supply-Side Sources of Gender Differences in Labor Market Outcomes: On-the-Job Training, Family Gaps, Psychological Attributes and Math Test Scores On-the-Job Training and Labor Market Experience Why do Firms Pay Tuition Benefits? Gender Differences in Labor Market Experience The On-the-Job Training Investment Decision Experience and Productivity Gender Differences in Training Investment Decisions Occupations and Earnings Family-Related Earnings Gaps Gender Differences in Psychological Attributes A Closer Look at Gender Differences in Math Test Scores Chapter 10 Evidence on the Sources of Gender Differences in Earnings and Occupations: Supply-Side Factors Versus Labor Market Discrimination Labor Market Discrimination: A Definition Analyzing the Sources of Gender Differences in Labor Market Outcomes Empirical Evidence on the Sources of Gender Differences in Earnings The Declining Gender Pay Gap Empirical Evidence on the Causes and Consequences of Gender Differences in Occupations Appendix: Regression Analysis and Empirical Estimates of Labor Market Discrimination Chapter 11 Labor Market Discrimination: Theory Theories of Labor Market Discrimination: An Overview Tastes for Discrimination Subtle Barriers Statistical Discrimination The Overcrowding Model Institutional Models (including dual labor markets) Feedback Effects Chapter 12 Government Policies to Combat Employment Discrimination Rationales for Government Intervention Equal Employment Opportunity Laws and Regulations Effectiveness of the Government's Antidiscrimination Effort Affirmative Action Comparable Worth Chapter 13 Changing Work Roles and Family Formation Economic Explanations for Family Formation Marriage Divorce Cohabitation: Opposite-Sex and Same-Sex Couples Fertility Chapter 14 The Changing American Family and Implications for Family Changing Family Structure Poverty: Incidence and Measurement Implications for Children's Well-Being Chapter 15 Government Policies Affecting Family Well-Being Policies to Alleviate Poverty Aid to Families with Dependent Children (AFDC) and Temporary Assistance to Needy Families (TANF) Earned Income Tax Credit (EITC) Child Support Enforcement Employment Strategies Taxes, Specialization, and Marriage Federal Income Tax Social Security Chapter 16 Balancing the Competing Demands of Work and Family The Competing Demands of Work and Family Rationales for Government and Employer Policies to Assist Workers Family Leave Child Care Other Employer-Provided Family Friendly Policies Chapter 17 Gender Differences Around the World: An Overview Indicators of Women's Economic Status Labor Force Participation Occupations Earnings Educational Attainment Fertility Housework Women's Role in Government and Their Standing Before the Law Cultural Factors Women's Status: An Assessment Economic Development, Globalization, and Women's Status Chapter 18 Gender Differences Around the World: A Closer Look at Specific Countries and Regions A Comparison of the United States to Other Economically Advanced Countries Challenges Facing Women in Developing Countries Countries of the Former Soviet Bloc Countries of the Middle East and North Africa

Chapter 17 - New Perspectives on Gender

This paper examines geographic differences in occupational segregation by sex in male-dominated, high-education STEM and non-STEM occupations to determine if labor market conditions for women vary according to red-state/blue-state patterns. Controlling for state demographic variables, economic factors, and labor market characteristics, our results show that there are indeed differences in labor market outcomes along red-state/blue-state lines, with blue states showing more integrated labor market outcomes than red states. Our results suggest that there may indeed be important differences in labor market outcomes for women associated with values differences in red versus blue states.

This chapter discusses the economic integration of refugees in Europe and reviews policies and practices regarding asylum seekers’ and refugees’ right to work. Asylum seekers and refugees generally fare worse on European job markets compared to native populations and other immigrant groups, making them among the most vulnerable populations in the European employment market. However, significant differences in labour market outcomes exist across countries, and countries differ substantially in terms of their policies and practices regarding labour market integration for these groups. Whereas some countries have extensive experience in hosting asylum seekers and refugees and have implemented comprehensive policies to facilitate their economic integration, other countries have only recently experienced increased inflows and have implemented weaker or fewer policy instruments. This chapter discusses the empirical evidence on the relation between asylum and integration policies and the labour market outcomes of refugees, and other key factors that determine how refugees fare on the labour market.

Unequal labour market outcomes between Roma and non-Roma have typically been explained by either the low level of educational attainment on the one hand or labour marked discrimination on the other — or both. A number of studies have found that significant labour market inequalities persist even after the low levels of educational attainment amongst Roma have been accounted for. This article looks at the role of special schooling in driving labour market inequalities between Roma and non-Roma in the Czech Republic. The article confirms the findings of other studies that Roma face significant differences in labour market outcomes which cannot be explained in terms of educational attainment. Moreover, the authors find that the discriminatory streaming of Roma into special remedial schools for the mentally disabled influences both labour market outcomes and the level of educational attainment; the latter effect being particularly strong. Special school attendance explains a small part of Roma labour market discrimination as typically measured, but its main impact is through lowering Roma educational attainment suggesting an additional discriminatory element in Roma and non-Roma labour market outcomes, which is more typically ascribed to ‘justified’ Roma and non-Roma educational differences. Thus, the authors propose that labour market inequality should not only be understood as a result of low attainment and labour market discrimination per se, but as a complex outcome of cumulative discrimination. In contrast to previous articles which take a parametric approach assuming common support between Roma and non-Roma, the non-parametric matching approach employed here explicitly takes into consideration the substantial differences in educational attainment observable between Roma and non-Roma.

Regional unemployment rates in Great Britain have narrowed dramatically in recent years. However, significant differences still remain in terms of both employment and economic inactivity rates, which may now better reflect relative labour market performance. This paper examines these differences in labour market outcomes using a unified empirical framework that decomposes regional differences in employment, economic inactivity and unemployment into components due to either structural or composition effects. The analysis highlights the important role that ill health and structural deficits currently play in accounting for regional differences in both employment and economic inactivity rates.

I examine the causes and the consequences of differences in labor market outcomes across local labor markets within a country. The focus is on a long-run general equilibrium setting, where workers and firms are free to move across localities and local prices adjust to maintain the spatial equilibrium. In particular, I develop a tractable general equilibrium framework of local labor markets with heterogenous labor. This framework is useful in thinking about differences in labor market outcomes of different skill groups across locations. It clarifies how, in spatial equilibrium, localized shocks to a part of the labor market propagate to the rest of the economy through changes in employment, wages and local prices and how this diffusion affects workers’ welfare. Using this framework, I address three related questions. First, I analyze the welfare consequences of productivity differences across local labor markets. I seek to understand what happens to the wage, employment and utility of workers with different skill levels when a local economy experiences a shift in the productivity of a group of workers. Second, I analyze the causes of productivity differences across local labor markets. To a large extent, productivity differences within a country are unlikely to be exogenous. I review the theoretical and empirical literature on agglomeration economies, with a particular focus on studies that are relevant for labor economists. Finally, I discuss the implications for policy.

The aim of this article is to analyse the transferability of higher education undertaken abroad to a domestic labour market. More specifically, how do Norwegians who have undertaken their education abroad cope on the labour market compared to those who have a corresponding education from Norway? To examine this, we analyse short‐term labour market careers among graduates. Three measures of labour market outcome are investigated: job probability, skill mismatch and wages. Results show that education undertaken abroad has both positive and negative effects on labour market outcome. Graduates with a foreign degree have a lower job probability and a higher risk of over‐education relative to home graduates. But among the employed, ‘abroad’ graduates have higher wages. The latter is explained partly by more abroad graduates than home graduates being employed in the private sector. Highest job probabilities are found among those who have parts of their education from abroad. The main results are significant and robust across models, but the quantitative differences in labour market outcomes between abroad and home graduates are relatively small.

The relationship between earnings, savings and retirement is well-known; however the linkage between labor market outcomes and financial market performance is generally unacknowledged. This Working Paper examines the implications of the link between labor markets and financial markets for workers who save money in individual retirement accounts. Specifically, differences in labor market outcomes across groups may imply differences in the timing of investments, which may reduce savings over time for these groups compared to their counterparts. Using monthly data from the Current Population Survey (1979-2002) we generate hypothetical investment portfolios using stock and bond indices. We exploit differences across demographic groups in unemployment and wage growth, and use these differences to examine each group's investment outcomes. We then disaggregate the total effects into short-term and long-term components. We find some evidence of short-term market timing effects on investment, but we find much larger long-term effects for some groups. Our findings suggest that, for many people, the retirement savings losses associated with the timing of markets are similar to the costs of annuitizing savings upon retirement. The differences are especially pronounced by education and sex.

Women and men at work

Host country language proficiency has been shown to account for ethnic differences in labour market outcomes. Prior studies generally assume that language skills represent a form of human capital, affecting employees’ productivity. However, language proficiency may also be associated with discrimination. Lower language proficiency may elicit distaste for certain ethnic groups, as it is a prominent reminder of the respective origin. When this reminder vanishes as language skills rise, group-specific distaste should also reduce. Employers may thus not only value language skills in terms of productivity but also factor in less group-specific distaste when evaluating immigrant jobseekers with high-language skills. Moreover, if employers lack information on competences that are hard to observe, high-language proficiency may prevent the application of adverse ethnic beliefs. Using data from the National Educational Panel Study (NEPS), I examine whether language skills affect crucial indicators of labour market success differently for groups that vary with respect to the level of distaste associated with them. I also investigate whether this effect is conditional on the amount of information available to employers. Findings indicate group-specific returns to higher-language proficiency, irrespective of the available information. This might suggest that, in addition to affecting employees’ productivity, language proficiency may also be associated with taste discrimination for certain ethnic groups.

It has long been recognized that consumption behavior represents mainly joint household or family decisions rather than separate decisions of family members. Accordingly, the observational units in consumption surveys are "consumer units," that is, households in which income is largely pooled and consumption largely shared. More recent is the recognition that an individual's use of time, and particularly the allocation of time between market and nonmarket activities, is also best understood within the context of the family as a matter of interdependence with needs, activities, and characteristics of other family members. More generally, the family is viewed as an economic unit which shares consumption and allocates production at home and in the market as well as the investments in physical and human capital of its members. In this view, the behavior of the family unit implies a division of labor within it. Broadly speaking, this division of labor or "differentiation of roles" emerges because the attempts to promote family life are necessarily constrained by complementarity and substitution relations in the household production process and by comparative

The authors examine the labor market reintegration after medical rehabilitation by analyzing a large representative administrative panel data set for Germany. The research design focuses on socio-demographic group differences in before-after differences in days with unemployment benefits, days in employment, and labor income of participants in medical rehabilitation. The mean before-after differences indicate that the number of days with unemployment benefits is larger and the number of working days and labor income are smaller after the rehabilitation than before. Our regression analysis further reveals that the before-after differences in labor market outcomes differ significantly between socio-demographic groups. JEL Classification: I1, J2

There are significant differences in labor market outcomes by gender in Tunisia. These gender differences differ substantially in the richer coastal and eastern regions and the poorer southern and western regions. This chapter uses the 2014 Tunisia Labor Market Panel Survey (TLMPS) to examine the characteristics of male and female labor market participants in the lagging southern, western, and central regions, and in the leading regions. The chapter also discusses results from an econometric analysis of the factors that influence monthly wages and the probability of employment for men and women respectively. Our results show that gender plays a huge role in labor market outcomes: women are less likely to participate in the labor force, are more likely to be unemployed, and receive lower wages. In addition, youth and educated women in lagging regions are particularly disadvantaged because they are less likely to find a job and may not have the option of moving to places where employment prospects are better. Moreover, our results suggest that wage discrimination against women is prevalent outside the leading region in Tunisia.

Children of Immigrants in the Labour Markets of EU and OECD Countries