Study on the Social and Labour Market Integration of Ethnic Minorities Contract No. VC/2006/0309 of the European Commission Institute for the Study of Labor (IZA) December 3, 2008 Bremerhaven

2 The Study Conducted October December 2007 by the Institute for the study of Labor (IZA) for the HLG and EC

3 Outline of the Study 1.Ethnic Minorities in the European Union: An Oveview 2.Country Studies 3.Attitudes 4.IZA Expert Opinion Survey 5.A Policy Matrix 6.Evaluation of Integration Initiatives 7.Policy Conclusions

4 Ethnic Minorities in European Union: An Overview Severe lack of data However, no picky debate about measurement concepts can hide the worrisome reality of ethnic minorities in Europe Ethnic minorities tend to have –higher unemployment rates –lower occupational attainment and wages –lower participation rates

5 Ethnic Minorities in European Union: An Overview In Western Europe the at-risk ethnic minorities are typically of immigrant origin In Central and Eastern Europe it is the (indigenous) Roma that face the most serious risks of exclusion

6 Country Studies Surveyed countries: –Denmark, France, Germany, Hungary, Latvia, The Netherlands, Romania, Slovakia, Spain, The United Kingdom Key observations: –Main integration barriers include human capital gap, the lack of language skills, and discrimination (in the labor market and beyond) –Economic growth seems to reduce but not eliminate labor market gaps –Immigration policy and self-selection of immigrants are some of the key determinants of immigrants’ labor market integration –Immigration and integration policies vary, more recently language courses and entry requirements applied The main integration barriers in Germany –Neglect of integration issues under the misperception of the temporary character of migration –Low human capital (e.g. lack of vocational training) of immigrants –Concentration in parts of Germany undergoing restructuralization –Often negative attitudes

7 Country Studies: Germany Unemployment: Positive and growing labor market gap

8 Attitudes Negative attitudes one of the greatest integration barriers –Self-reported ethnic discrimination in % of total population, European Social Survey (ESS)

9 Attitudes –Self-reported discrimination in % of minority population, ESS Analytical results using the ESS –Young, educated, or working people have more positive attitudes

10 IZA Expert Opinion Survey Insights into the opinions of various expert stakeholders –non-governmental organizations –governmental institutions –employers’ and employees’ associations Threefold objective: –measure the experts’ perceptions and concerns about the labour market integration of ethnic minorities –capture the experts’ opinions about the perceptions of ethnic minorities in their country on various issues concerning their labour market integration and integration policy initiatives –identify business and private, non-governmental, and public initiatives aimed at labour market integration of ethnic minorities and evaluate their success. Online questionnaire –215 experts from 27 EU countries (almost 30% ethnic minority) –192 integration initiatives

11 Risk of Exclusion: Level Medium to high. Social and labor market exclusion a serious problem

12 Risk of Exclusion: Trend This risk is increasing

13 Minorities at Greatest Risk Africans and Roma or Sinti

14 Changes Desired? Almost all minorities want to change their situation

15 Where Changes Desired? Especially in paid employment, attitudes, education and housing

16 Who is Responsible for Changes? National and local governments, but also the EC and EU and minority representatives

17 Preferred Policy Principles Equal treatment

18 Integration Barriers Discrimination, education, language, institutions (legal provisions)

19 Desired Intervention Especially public

20 Integration Initiatives: Success Factors Besides the usual efficiency factors, acceptance by minority and majority, fair treatment, and communication are essential.

21 The Policy Matrix A tool to compare and scale the minorities’ situation Measures the risk of LM exclusion risk and its trend IZA Expert Opinion Survey, 4 largest m. The NE corner requires most policy attention

22 Case Studies: Integration Initiatives Qualitative approach –22 examples of integration initiatives successful in some aspects –Covers all regions of the EU, small and large companies, mostly business initiatives Good practice –Fairness vis-à-vis all partners and transparent rules facilitate trust, social relationships and positive perceptions –Voluntary participation and strict and transparent selection rules ensure motivation and positive image. –Fair and equal treatment mitigates resentment, facilitates public support, and alleviates stigmatization of the minority –Positive action is accepted as a transitory measure to overcome exclusion –Merit based remuneration creates feelings of self-worth, prompts work discipline, and strengthens the support of the majority –Cooperation between stakeholders breeds functional relationships –Long term commitment is on of the most important success factors

23 Policy Conclusions The situation is worrisome Integration is possible –Targeted action is necessary, must take into account specific issues –General integration measures serve to combat discrimination and create environment empowering stakeholders to take targeted action –General and targeted actions need to be balanced, complementary and reinforcing –All measures need to be persistent to allow for time necessary to become effective and flexible to account for changes in the society –Persistence is especially important when tackling cultural issues such as perceptions and attitudes.

Martin Kahanec (IZA) IZA, P.O. Box 7240, Bonn, Germany Phone: +49 (0) Fax: +49 (0)