Study on the Social and Labour Market Integration of Ethnic Minorities

Contract No. VC/2006/0309 of the European Commission

Institute for the Study of Labor (IZA)

December 3, 2008

Bremerhaven

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The Study

Project team Affiliations Core research team Prof. Dr. Klaus F. Zimmermann IZA, DIW Berlin, Bonn University Dr. Martin Kahanec IZA Prof. Dr. Amelie Constant IZA, DIW DC, Georgetown University Prof. Dr. Don DeVoretz IZA, Simon Fraser University Liliya Gataullina, B.A. IZA, DIW Berlin Dr. Anzelika Zaiceva IZA, University of Bologna Advice and support Fourteen experts and specialists External Experts Ten country experts

Conducted October 2006 - December 2007 by the

Institute for the study of Labor (IZA) for the HLG and EC

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Outline of the Study

1. Ethnic Minorities in the European Union: An Oveview

2. Country Studies

3. Attitudes

4. IZA Expert Opinion Survey

5. A Policy Matrix

6. Evaluation of Integration Initiatives

7. Policy Conclusions

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Ethnic Minorities in European Union:An Overview

• Severe lack of data• However, no picky

debate about measurement concepts can hide the worrisome reality of ethnic minorities in Europe

• Ethnic minorities tend to have – higher unemployment

rates– lower occupational

attainment and wages– lower participation

rates

Country Minority/majority

group Participation

ratea) Unemployment

rate Hourly wageb)

Denmark Total Population 76.3 4.5 278.3 Turks 62.2 17.8 170.7 Iraqis 37.7 26.9 138.4

Bosnia-Herzegovinians

57.2 12.9 177.4

Other non-Western 55.8 28 164.8 NL Dutch Majority 9 10.4 Turks 21 7.1 Moroccans 27 6.9 Surinamese 16 8.5 Antilleans 22 8 UK

White Majority Population 81.8 3.8 11.8

Indians 80.1 6.4 12.2 Pakistanis 55.2 12.8 10.2 Bangladeshis 48.7 19.4 10.1 Other Asians 75.1 8.3 10.2 Black Caribbeans 81.0 11.0 11.4 Black Africans 77.7 11.8 9.9

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Ethnic Minorities in European Union:An Overview

Activity rate Unemployment rate Roma Majority Roma Majority Spain 69.3 56.1 13.8 10.4 Romania 22.9 41.6 28.5 11.5 Hungary 21.9 40.5 53.9 9.8

• In Western Europe the at-risk ethnic minorities are typically of immigrant origin

• In Central and Eastern Europe it is the (indigenous) Roma that face the most serious risks of exclusion

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Country Studies

• Surveyed countries: – Denmark, France, Germany, Hungary, Latvia, The Netherlands, Romania,

Slovakia, Spain, The United Kingdom

• Key observations:– Main integration barriers include human capital gap, the lack of language

skills, and discrimination (in the labor market and beyond)– Economic growth seems to reduce but not eliminate labor market gaps– Immigration policy and self-selection of immigrants are some of the key

determinants of immigrants’ labor market integration– Immigration and integration policies vary, more recently language

courses and entry requirements applied

• The main integration barriers in Germany– Neglect of integration issues under the misperception of the temporary

character of migration – Low human capital (e.g. lack of vocational training) of immigrants– Concentration in parts of Germany undergoing restructuralization– Often negative attitudes

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Country Studies: Germany

• Unemployment: Positive and growing labor market gap

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Attitudes

• Negative attitudes one of the greatest integration barriers– Self-reported ethnic discrimination in % of total population,

European Social Survey (ESS)

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Attitudes

– Self-reported discrimination in % of minority population, ESS

• Analytical results using the ESS– Young, educated, or working people have more positive attitudes

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IZA Expert Opinion Survey

• Insights into the opinions of various expert stakeholders– non-governmental organizations– governmental institutions– employers’ and employees’ associations

• Threefold objective:– measure the experts’ perceptions and concerns about the labour

market integration of ethnic minorities– capture the experts’ opinions about the perceptions of ethnic

minorities in their country on various issues concerning their labour market integration and integration policy initiatives

– identify business and private, non-governmental, and public initiatives aimed at labour market integration of ethnic minorities and evaluate their success.

• Online questionnaire– 215 experts from 27 EU countries (almost 30% ethnic minority)– 192 integration initiatives

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Risk of Exclusion: Level

• Medium to high. Social and labor market exclusion a serious problem

0

10

20

30

40

50

60

No risk Low risk Medium risk High risk Very high risk

All respondents Minority respondents

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Risk of Exclusion: Trend

• This risk is increasing

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Minorities at Greatest Risk

• Africans and Roma or Sinti

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Changes Desired?

• Almost all minorities want to change their situation

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Where Changes Desired?• Especially in paid employment, attitudes, education and

housing

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Who is Responsible for Changes?• National and local governments, but also the EC and EU and

minority representatives

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Preferred Policy Principles

• Equal treatment

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Integration Barriers

• Discrimination, education, language, institutions (legal provisions)

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Desired Intervention• Especially public

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Integration Initiatives: Success Factors• Besides the usual efficiency factors, acceptance by minority

and majority, fair treatment, and communication are essential.

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The Policy MatrixGermany

Turks

ex-Soviet Union

ex-Yugoslav

Africans

1

2

3

1 3 5

Risk

Tre

nd

Slovakia

Hungarians

Roma

Ruthenians and

Ukrainians

Asians

1

2

3

1 3 5

Risk

Tre

nd

• A tool to compare and scale the minorities’ situation

• Measures the risk of LM exclusion risk and its trend

• IZA Expert Opinion Survey, 4 largest m.

• The NE corner requires most policy attention

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Case Studies: Integration Initiatives• Qualitative approach

– 22 examples of integration initiatives successful in some aspects– Covers all regions of the EU, small and large companies, mostly

business initiatives

• Good practice– Fairness vis-à-vis all partners and transparent rules facilitate trust,

social relationships and positive perceptions– Voluntary participation and strict and transparent selection rules

ensure motivation and positive image. – Fair and equal treatment mitigates resentment, facilitates public

support, and alleviates stigmatization of the minority– Positive action is accepted as a transitory measure to overcome

exclusion– Merit based remuneration creates feelings of self-worth, prompts work

discipline, and strengthens the support of the majority– Cooperation between stakeholders breeds functional relationships– Long term commitment is on of the most important success factors

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Policy Conclusions

• The situation is worrisome• Integration is possible

– Targeted action is necessary, must take into account specific issues

– General integration measures serve to combat discrimination and create environment empowering stakeholders to take targeted action

– General and targeted actions need to be balanced, complementary and reinforcing

– All measures need to be persistent to allow for time necessary to become effective and flexible to account for changes in the society

– Persistence is especially important when tackling cultural issues such as perceptions and attitudes.

Martin Kahanec(IZA)

IZA, P.O. Box 7240, 53072 Bonn, Germany

Phone: +49 (0) 228 - 38 94 -529Fax: +49 (0) 228 - 38 94 180

E-mail: kahanec@iza.org

http://www.iza.org