Headlines 2013

Immigrants in the labor force

2013-12-10


When testing why immigrants are less likely than natives to be working in most OECD-countries, Andreas Bergh, IFN, finds two significant patterns. First, welfare state generosity keeps immigrants away from the labor force. Second, given that immigrants enter the labor force, collective bargaining agreements explain immigrant unemployment.

Using two different measures of immigrant labor-market integration (the ratio between immigrant unemployment to native unemployment, and the ratio of employment rate among natives and immigrants) Andreas Bergh has tested six suggested explanations of why immigrants are less likely than natives to be working in most OECD-countries: Intolerance, the education of immigrants, welfare state generosity, employment protection laws, union power and the share of immigrants in the population.

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Labour-market integration of immigrants in OECD-countries: What explanations fit the data? (ECIPE),By Andreas Bergh (PhD), Associate Professor in Economics at Lund University and the Research Institute of Industrial Economics.

 

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