Parties, governments and the integration of immigrants

Abstract

ABSTRACT Integration of immigrants into the labor market is a sizeable policy concern for developed democracies. This article argues that government type influences immigrants’ labor market outcomes. Since immigrant integration constitutes a multidimensional policy space, differences in party preferences and the dynamics of intragovernmental and legislative bargaining make it hard for coalition and minority governments to implement effective labor market integration policies. Consequently, single-party majority governments are better able to foster the labor market integration of immigrants. Fixed-effects estimations in a panel of OECD countries provide evidence in favor of this argument. A single-party majority government reduces the employment gap between the foreign and the native-born population with several percentage points.