Economic Preferences and Attitudes of the Unemployed: Are Natives and Second Generation Migrants Alike?

Amelie Constant, Annabelle Krause-Pilatus, Ulf Rinne and Klaus Zimmermann ()

No 5380, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper we study the economic effects of risk attitudes, time preferences, trust and reciprocity while we compare natives and second generation migrants. We analyze an inflow sample into unemployment in Germany, and find differences between the two groups mainly in terms of risk attitudes and positive reciprocity. Second generation migrants have a significantly higher willingness to take risks and they are less likely to have a low amount of positive reciprocity when compared to natives. We also find that these differences matter in terms of economic outcomes, and more specifically in terms of the employment probability about two months after unemployment entry. We observe a significantly lower employment probability for individuals with a high willingness to take risks. Some evidence suggests that this result is channeled through reservation wages and search intensity.

Keywords: migration; time preferences; trust; unemployment; risk attitudes; personality traits; reciprocity (search for similar items in EconPapers)
JEL-codes: F22 J15 J61 J64 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2010-12
New Economics Papers: this item is included in nep-cbe, nep-lab, nep-mig and nep-pol
References: View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Published - published in: International Journal of Manpower, 2011, 32 (7), 825-851

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Related works:
Working Paper: Economic Preferences and Attitudes of the Unemployed: Are Natives and Second Generation Migrants Alike? (2011)
Working Paper: Economic Preferences and Attitudes of the Unemployed: Are Natives and Second Generation Migrants Alike? (2010)
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