This paper analyzes how the explained and unexplained part of the Oaxaca-Blinder decomposition has changed due to a shift in attitudes towards immigrants in Germany. We use the migration crisis in 2015 as an exogenous source of variation in attitudes towards immigrants. As many studies analyze labor market discrimination, there are very few studies examining discrimination in the German labor market by conducting a natural experiment. In contrast to previous empirics, this paper sets out to explain and decompose the differences between immigrants and natives using a rather unique method. This paper is based on data from the European Social Survey (ESS) conducted in 2014 and 2016 and is analyzed using measures of public attitudes, the linear probability model, and the Oaxaca-Blinder decomposition. The results indicate that there are rather great differences in employment probabilities, human capital and family constellations between immigrants and natives. Measuring public attitudes, it is evident that there has been a general decline in positive attitudes towards immigrants post the migration crisis in 2015. Analyzing the Oaxaca-Blinder decomposition, it is evident that the unexplained (discriminatory) part of the decomposition has decreased which is referred to as a decrease in discrimination in the labor market. Even though that a general decline in positive attitudes towards immigrants is present, an increase in the unexplained part of the decomposition is not observed. As no correlation between public attitudes and the unexplained part of the decomposition is apparent, it is most likely that employers base their employment decision on the extent of information provided. This indicating that discrimination in the labor market most likely is due to statistical discrimination and not due to the preferences of the employer.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:lnu-105077 |
| Date | January 2021 |
| Creators | Omerovic, Rijad, Kucukyavuz, Arda |
| Publisher | Linnéuniversitetet, Institutionen för nationalekonomi och statistik (NS), Linnéuniversitetet, Institutionen för nationalekonomi och statistik (NS) |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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