August 2013

IZA DP No. 7598: Unemployment of Non-western Immigrants in the Great Recession

Jakub Cerveny, Jan C. van Ours

published in: De Economist, 2013, 161, 463-480.

This paper examines whether unemployment of non-western immigrant workers in the Netherlands was disproportionally affected by the Great Recession. We analyze unemployment data covering the period November 2007 to February 2013 finding that the Great Recession affected unemployment rates of non-western immigrant workers in absolute terms more than unemployment rates of native workers. However, in relative terms there is not much of a difference. We also find that the sensitivity of individual job finding rates to the aggregate state of the labor market does not differ between natives and non-western immigrants. In combination our findings suggest that the Great Recession did not have a different impact on the unemployment of non-westerns immigrants and native Dutch.