The labour market costs of job displacement by migrant status

Maria Balgova () and Hannah Illing ()
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Maria Balgova: Bank of England, Postal: Bank of England, Threadneedle Street, London, EC2R 8AH
Hannah Illing: University of Bonn

No 1099, Bank of England working papers from Bank of England

Abstract: This paper examines the differential impact of job displacement on migrants and natives. Using administrative data for Germany from 1997–2016, we identify mass layoffs and estimate the trajectory of earnings and employment of observationally similar migrants and natives displaced from the same establishment. Despite similar pre-layoff careers, migrants lose an additional 9% of their earnings in the first five years after displacement. This gap arises from both lower re-employment probabilities and post-layoff wages and is not driven by selective return migration. Key mechanisms include sorting into lower-quality firms and depending on lower-quality coworker networks during job search.

Keywords: Immigration; job displacement; job search (search for similar items in EconPapers)
JEL-codes: J62 J63 J64 (search for similar items in EconPapers)
Pages: 64 pages
Date: 2024-12-06
New Economics Papers: this item is included in nep-eur, nep-int and nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:boe:boeewp:1099

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