Editor's Choice Cyclical Unemployment Fluctuations of Immigrants and Natives: Evidence from Austria

Nora Prean and Karin Mayr-Dorn

CESifo Economic Studies, 2016, vol. 62, issue 1, 1-25

Abstract: We analyze differences in unemployment between immigrants and natives over the business cycle, using a comprehensive matched employer–employee data set for Austria. We find that the unemployment rate of immigrants from outside the European Economic Area and their individual transition rates into unemployment are significantly more volatile over the cycle than those of natives. We test for existing theories according to which a greater variability in employment can be due to a selection of workers into specific industries, firms, or temporary jobs. We find no evidence for the differential unemployment response of immigrant workers in our sample to be driven by such selection.

Date: 2016
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