Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/311935 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17496
Publisher: 
Institute of Labor Economics (IZA), Bonn
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 5 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.
Subjects: 
immigration
job displacement
job search
JEL: 
J62
J63
J64
Document Type: 
Working Paper

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