The Study

1. Study on the Social and Labour Market Integration of Ethnic MinoritiesContract No. VC/2006/0309of the European CommissionInstitute for the Study of Labor (IZA)December 3, 2008Bremerhaven

2. The Study Conducted October 2006 - December 2007 by the Institute for the study of Labor (IZA) for the HLG and EC

3. Outline of the Study • Ethnic Minorities in the European Union: An Oveview • Country Studies • Attitudes • IZA Expert Opinion Survey • A Policy Matrix • Evaluation of Integration Initiatives • 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.

24. Martin Kahanec (IZA) IZA, P.O. Box 7240, 53072 Bonn, Germany Phone: +49 (0) 228 - 38 94 -529 Fax: +49 (0) 228 - 38 94 180 E-mail: kahanec@iza.org http://www.iza.org