Migration and the Labour Market of the Czech Republic

Bohdana Kurylo*

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapterAcademic

Abstract

This chapter provides an overview of the labour market integration of immigrants in the Czech Republic employing European Union—Statistics on Income and Living Conditions (EU-SILC) survey data for 2006–2021. Analysis of immigrant-native wage differences may be helpful for policymakers since the performance of immigrants in the labour market indicates the overall effectiveness of immigration and integration policies. Furthermore, this chapter explores the main determinants of the location choices of Ukrainian war refugees, including ethnic networks and employment prospects, aimed at refining the explanation of the unequal distribution of refugees. We quantified the wage differences between immigrants and natives across the whole wage distribution spectrum employing the Blinder-Oaxaca decomposition for unconditional quantile regressions method. Our results indicate that immigrants from Eastern and Southern Europe earn on average less than natives in the Czech Republic. Furthermore, low-earners suffer from a more considerable wage disadvantage than do high-earners. A number of unobservable factors serve to explain a signifi cant proportion of the immigrant-native wage gap across the whole of the wage distribution spectrum. In particular, immigrants reap lower returns on their experience and education, which is most likely due to the imperfect transferability of their skills, lower returns on foreign education and issues concerning the recognition of foreign educational qualifications. Our findings serve to highlight the urgency of designing and implementing more effective integration and equal treatment policies aimed at narrowing the immigrant-native wage gap.
Original languageEnglish
Title of host publicationNavigating Europe’s Socio-Economic Crisis
Subtitle of host publicationthe Impact of Inflation, the Energy Crisis, and the Conflict in Ukraine on the Czech Republic and Beyond
EditorsRobin Maialeh
PublisherPalgrave Macmillan
Pages49-79
Number of pages31
ISBN (Electronic)9783031448737
ISBN (Print)9783031448720
DOIs
Publication statusPublished - 1 Jan 2024

Keywords

  • Immigrant-native wage gap
  • Integration
  • Ukrainian war refugees

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