Workplace segregation and the labour market performance of immigrants

Sébastien Willis

Labour Economics, 2025, vol. 93, issue C

Abstract: This paper studies the effect of conational coworkers in an immigrant’s first job on subsequent labour market outcomes using German register data. I instrument for the conational share using idiosyncratic variation in firm hiring in the local labour market where the immigrant searches for work. A ten percentage point increase in the initial conational share lowers employment by around 3 percentage points in the long-run. Survey evidence suggests that a higher conational share leads to higher self-employment and unemployment, rather than re-migration. Furthermore, both differential host country-specific human capital accumulation and changes in job search outcomes contribute to the employment effect.

Keywords: Employment; Segregation; Coworker networks; Immigrant earnings dynamics (search for similar items in EconPapers)
JEL-codes: J31 J61 J64 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:93:y:2025:i:c:s0927537124001489

DOI: 10.1016/j.labeco.2024.102652

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