Ethnic Identity and Labor-Market Outcomes of Immigrants in Europe

Using data from the European Social Survey, we analyze the relationship between ethnic identity and employment prospects of immigrants coming from non-European countries. We find that a strong ethnic identity is associated with a lower probability of being employed. When we differentiate between first and second generations of immigrants, our evidence reveals signs of a cultural and economic integration of immigrants in Europe. However, when a strong ethnic sentiment is preserved, the employment penalty is amplified. Our results also show that the relationship between ethnic identity and employment prospects may depend on the type of integration and labor-market policies implemented in the country where the immigrant lives.