The Effects of Social and Labour Market Policies of EU-countries on the Socio-Economic Integration of First and Second Generation Immigrants from Different Countries of Origin

In this article, we analyse four different dimensions of socio-economic integration of 1st and 2nd generation immigrants into the labour markets of 13 EU countries and we assess, taking into account a number of individual characteristics, the effects of the countries of origin and the countries of destination on this integration. We find that participation in the labour market, unemployment, occupational status and the chances of reaching the upper middle-class are different, although inter-related, dimensions of the socio-economic integration of immigrants and they work differently for men and women. In the countries of destination, the level of employment protection legislation and the conservative welfare regime affect this integration negatively. Most indicators of national policies aimed at the integration of immigrants have no effects on the socio-economic integration of immigrants. Furthermore, we find a number of origin effects which continue to have an impact on 2nd generation immigrants. Political stability and political freedom in origin countries have positive and negative effects on socio-economic integration. The emigration rate of the origin countries has a negative effect. The higher levels of socio-economic integration amongst immigrants from other EU-countries demonstrates the functioning of the European Union as an integrated labour market .Controlling for individual religious affiliation turns out to be very useful, since we find a number of negative effects of being a Muslim, among both men and women. While individual education is an important predictor of immigrants' labour market outcomes, our findings indicate lower returns on this education in terms of occupational status, indicating a ceiling effect for highly-educated 2nd generation immigrants who cannot translate their qualifications into high-status jobs to the same extent as their native peers.