Ethnic identity and labor market: Evidence from European Union Countries

Abstract

The relation between immigrants’ unemployment status and their attachment to their traditions, customs, culture, and other dimensions of ethnic identity has an extensive literature in economics. However, there is a disagreement on whether there is a significant relation between those components or not. We use data from the European Social Survey to evaluate how ethnic identity of immigrants (first and second generation) determines their possibility of getting a job. We estimate the relationship using a linear probability model and instrumental variable approach. We find that there is a positive relation, yet not a causal one.