Ethnic Employment Gaps of Graduates in the Netherlands
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Ethnic Employment Gaps of Graduates in the Netherlands Paul Bisschop1 · Bas ter Weel1,2 · Jelle Zwetsloot1 Accepted: 30 September 2020 / Published online: 8 October 2020 © Springer Science+Business Media, LLC, part of Springer Nature 2020
Abstract This research documents ethnic employment gaps for labour-market entrants in the Netherlands in the period 2006–2016. We compare short-term and long-term differences in employment of Dutch graduates with graduates from Moroccan, Turkish, Antillean and Surinamese origin and other (non-)western countries. The analyses focus on graduates from secondary vocational education, which is a group of graduates with many people from ethnic minorities. We document ethnic employment gaps by using an Oaxaca–Blinder decomposition. Our findings suggest that there exist persistent ethnic employment gaps. The gaps are largest for female workers. Part of the ethnic employment gaps are explained by observed characteristics, such as the level of secondary vocational education and the field of study or socioeconomic background and household and neighbourhood characteristics. The substantial unexplained part is present among all ethnic groups and does not disappear over time. Keywords Employment · Labour-market entry · Ethnic minorities JEL Classification J15 · J2 · J70
1 Introduction Ethnic employment gaps have been documented in many countries (e.g. OECD 2007a, b, 2008). The reasons for these gaps are a mix of labour supply and demand features. On the supply side differences in human capital, networks and types of education are important determinants of ethnic employment gaps. On the demand side, Electronic supplementary material The online version of this article (https://doi.org/10.1007/s1064 5-020-09375-w) contains supplementary material, which is available to authorized users. * Bas ter Weel [email protected] 1
SEO Amsterdam Economics, Amsterdam, Netherlands
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Amsterdam School of Economics, University of Amsterdam, Amsterdam, Netherlands
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discrimination and biases are likely to play a role. Ethnic employment gaps have also been documented in the Netherlands but a careful decomposition of the gaps is lacking, especially for labour-market entrants. In this research we document the ethnic employment gap for the largest group of yearly labour-market entrants in the Netherlands 1 year after graduation. We analyse and compare employment gaps of two cohorts: those who graduated in 2006/07 and 2007/08 and those who graduated in 2014/15 and 2015/16. For the first cohort, we also analyse long-term employment gaps, that is 10 years after graduation. We decompose the ethnic employment gap into several observable factors. The remaining difference is then due to unobservable differences (such as differences in motivation, networks, search behaviour, preferences and unobserved skills) and other characteristics that we have not been able to measure (most likely labour demand factors, such as biases and discrimination at the side of potential emp
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