Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/52112 
Year of Publication: 
2010
Series/Report no.: 
IZA Discussion Papers No. 5380
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
In this paper we study the economic effects of risk attitudes, time preferences, trust and reciprocity while we compare natives and second generation migrants. We analyze an inflow sample into unemployment in Germany, and find differences between the two groups mainly in terms of risk attitudes and positive reciprocity. Second generation migrants have a significantly higher willingness to take risks and they are less likely to have a low amount of positive reciprocity when compared to natives. We also find that these differences matter in terms of economic outcomes, and more specifically in terms of the employment probability about two months after unemployment entry. We observe a significantly lower employment probability for individuals with a high willingness to take risks. Some evidence suggests that this result is channeled through reservation wages and search intensity.
Subjects: 
unemployment
migration
personality traits
risk attitudes
time preferences
trust
reciprocity
JEL: 
F22
J15
J61
J64
Document Type: 
Working Paper

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