A Broken Social Elevator? Employment Outcomes of First- and Second-Generation Immigrants in Belgium

This paper provides a comprehensive quantitative assessment of the employment performance of first- and second-generation immigrants in Belgium compared to that of natives. Using detailed quarterly data for the period 2008-2014, we find not only that first-generation immigrants face a substantial employment penalty (up to - 30% points) vis-a-vis their native counterparts, but also that their descendants continue to face serious difficulties in accessing the labour market. For descendants of two non-EU-born immigrants the social elevator appears to be broken. Indeed, estimates suggest that their employment performance is no better than that of their parents (whose penalty averages 19% points). Immigrant women are also particularly affected. While they are all found to face a double penalty because of their gender and origin, for women originating from outside the EU the penalty is generally even more severe. Among the key drivers of access to employment, we find: (1) education (especially for second-generation immigrants from non-EU countries), and (2) proficiency in the host country language, citizenship acquisition, and (to a lesser extent) duration of residence for first-generation immigrants. Finally, estimates suggest that around a decade is needed for the employment gap between refugees and other foreign-born workers to be (largely) suppressed.