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Job separation rates of immigrants and natives in the UK during the Great Recession

Job separation rates of immigrants and natives in the UK during the Great Recession PurposeThe purpose of this paper is to assess the probability of job separations of immigrants and natives in the UK before and during the economic crisis of 2008.Design/methodology/approachA mixed proportional hazard duration model with a semi-parametric piecewise constant baseline hazard is used on a data sample of inflows into employment.FindingsIt is found that the crisis increased the probability of exits to unemployment for all groups, while immigrants from the new countries of the European Union seemed to have the lowest hazard towards unemployment even after controlling for their demographic and labour market characteristics. More specifically, even when we account for the fact that they tend to cluster in jobs that are most vulnerable to the business cycle, they are still less likely to exit dependent employment than natives. However, this migrant group is adversely affected by the crisis the most.Research limitations/implicationsPossible implications of out-migration of the lower performers are discussed.Originality/valueThis paper makes use of the panel element of the UK Quarterly Labour Force Survey, and uses duration analysis on the individual level to assess the labour market outcomes of natives and immigrants in the UK. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Manpower Emerald Publishing

Job separation rates of immigrants and natives in the UK during the Great Recession

Papoutsaki, Dafni
International Journal of Manpower , Volume 38 (7): 19 – Oct 2, 2017
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19 pages

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0143-7720
DOI
10.1108/IJM-08-2017-0187
Publisher site
See Article on Publisher Site

Abstract

PurposeThe purpose of this paper is to assess the probability of job separations of immigrants and natives in the UK before and during the economic crisis of 2008.Design/methodology/approachA mixed proportional hazard duration model with a semi-parametric piecewise constant baseline hazard is used on a data sample of inflows into employment.FindingsIt is found that the crisis increased the probability of exits to unemployment for all groups, while immigrants from the new countries of the European Union seemed to have the lowest hazard towards unemployment even after controlling for their demographic and labour market characteristics. More specifically, even when we account for the fact that they tend to cluster in jobs that are most vulnerable to the business cycle, they are still less likely to exit dependent employment than natives. However, this migrant group is adversely affected by the crisis the most.Research limitations/implicationsPossible implications of out-migration of the lower performers are discussed.Originality/valueThis paper makes use of the panel element of the UK Quarterly Labour Force Survey, and uses duration analysis on the individual level to assess the labour market outcomes of natives and immigrants in the UK.

Journal

International Journal of Manpower – Emerald Publishing

Published: Oct 2, 2017

References

  • The Impact of Ireland’s recession on the labour market outcomes of its immigrants
  • Portuguese migrants in the German labor market: selection and performance
  • Underemployment in the UK in the great recession