Ethnic Identity, Residential Segregation, and Labor-Market Outcomes of Immigrants in Europe

Using data from the European Social Survey on most EU countries, we look at the relationship between ethnic identity, segregation and employment prospects, as well as at the individual characteristics associated with a strong ethnic identity. Different measures of ethnic identity are considered. We find that a strong attachment to ethnic customs and traditions seems to be associated with a lower probability of being employed. Contrarily to the presumptions often exposed by commentators and media, we also find that strong ethnic identities are not fostered in ethnically segregated neighborhoods and that they do not seem to be significantly associated with political activism. When we differentiate between first and second generations of immigrants, our evidence reveals signs of an economic and cultural integration of immigrants in Europe. Our results also suggest that the strength of an ethnic identity per se is not that important in affecting employment probability but it is the combination of ethnic identity and integration policies (especially the one focussing on labor-market access) where the migrant lives that matter.