Why are so few Africans at work in Ireland? Immigration policy and labour market disadvantage

Abstract

This paper explores why African immigrants have poor labour market outcomes in Ireland, with very low employment and exceptionally high unemployment rates. The analysis draws on the 2011 Census to examine outcomes for different groups of immigrants. Controlling for individual characteristics suggests that the labour market disadvantages suffered by Africans cannot be attributed to compositional differences: Africans in Ireland are a relatively well-educated group concentrated in the prime working-age groups. The paper investigates an alternative explanation that suggests that the African disadvantage may be due to the policy of excluding asylum seekers from the labour market. I create a novel measure of the risk of exposure to the Irish asylum system by expressing the number of asylum seekers in years prior to the 2011 Census as a proportion of the Irish-resident population from each country. This asylum risk variable is found to influence labour market outcomes, reducing employment and increasing unemployment chances. Moreover, its inclusion in the models also reduces the effects of African group membership. Even controlling for individual characteristics and risk of exposure to the asylum system, there remains a substantial residual African disadvantage in both employment and unemployment, which may be due to discriminatory practices by employers.