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Is naturalization a passport for better labor market integration? Evidence from a quasi-experimental setting

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  • Yajna Govind

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract
Better integration is beneficial for both migrants and the host country. In this respect, granting citizenship could be an important policy to boost migrants' integration. In this paper, I estimate the causal impact of obtaining citizenship on migrants' labor market integration. I exploit a change in the law of naturalization through marriage in France in 2006. This reform amended the eligibility criteria for applicants by increasing the required number of years of marital life from 2 to 4, generating an exogenous shock and thus a quasi-experimental setting. Using administrative panel data, I first show evidence of the impact of the reform on naturalization rates. I then use a difference-indifferences model to estimate the labor market returns to naturalization. I find that, among those working, citizenship leads to an increase in annual earnings. This effect is driven by a significant increase in the number of hours worked, as well as a positive effect on hourly wages. While the gain in earnings is similar for both men and women, the effect for men is mostly driven by an increase in hours worked compared to an increase in hourly wages for women. I provide suggestive evidence that naturalization helps reduce informality, and discrimination. This paper thus provides strong evidence that naturalization acts as a catalyst for labor market integration.

Suggested Citation

  • Yajna Govind, 2021. "Is naturalization a passport for better labor market integration? Evidence from a quasi-experimental setting," Working Papers halshs-03265055, HAL.
    • Handle: RePEc:hal:wpaper:halshs-03265055
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03265055
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    References listed on IDEAS

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    1. Hippolyte d'Albis & Ekrame Boubtane & Dramane Coulibaly, 2016. "Immigration Policy and Macroeconomic Performance in France," Annals of Economics and Statistics, GENES, issue 121-122, pages 279-308.
    2. Steinhardt, Max Friedrich, 2012. "Does citizenship matter? The economic impact of naturalizations in Germany," Labour Economics, Elsevier, vol. 19(6), pages 813-823.
    3. repec:cai:poeine:pope_802_0239 is not listed on IDEAS
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    7. Pascale Petit & Emmanuel Duguet & Yannick L’Horty, 2015. "Discrimination résidentielle et origine ethnique : une étude expérimentale sur les serveurs en Île-de-France," Economie & Prévision, La Documentation Française, vol. 0(1), pages 55-69.
    8. Christina Gathmann & Nicolas Keller, 2018. "Access to Citizenship and the Economic Assimilation of Immigrants," Economic Journal, Royal Economic Society, vol. 128(616), pages 3141-3181, December.
    9. Xin Meng & Robert G. Gregory, 2005. "Intermarriage and the Economic Assimilation of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 23(1), pages 135-176, January.
    10. Hainmueller, Jens & Hangartner, Dominik & Ward, Dalston, 2019. "The Effect of Citizenship on the Long-Term Earnings of Marginalized Immigrants: Quasi-Experimental Evidence from Switzerland," SocArXiv 24qas, Center for Open Science.
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    Cited by:

    1. Ludolph, Lars, 2023. "The value of formal host-country education for the labour market position of refugees: Evidence from Austria," Economics of Education Review, Elsevier, vol. 92(C).
    2. Simone Bertoli & Morgane Laouenan & Jérôme Valette, 2022. "Border Apprehensions and Federal Sentencing of Hispanic Citizens in the United States," SciencePo Working papers Main hal-03818735, HAL.
    3. Arendt, Jacob Nielsen & Dustmann, Christian & Ku, Hyejin, 2023. "Permanent Residency and Refugee Immigrants' Skill Investment," IZA Discussion Papers 16313, Institute of Labor Economics (IZA).
    4. Claudio Deiana & Ludovica Giua & Roberto Nisticò, "undated". "Legalization and Long-Term Outcomes of Immigrant Workers," Development Working Papers 480, Centro Studi Luca d'Agliano, University of Milano.
    5. Gathmann, Christina & Garbers, Julio, 2023. "Citizenship and integration," Labour Economics, Elsevier, vol. 82(C).
    6. Hasager, Linea, 2024. "Does granting refugee status to family-reunified women improve their integration?," Journal of Public Economics, Elsevier, vol. 234(C).
    7. Emeriau, Mathilde & Wolton, Stephane, 2024. "In or Out? Xenophobic Violence and Foreigner Integration. Evidence from 19th century France," SocArXiv srbmg, Center for Open Science.
    8. Claudio Deiana & Ludovica Giua & Roberto Nisticò, 2021. "Getting Off on the Wrong Foot: The Long-Term Effects of Missing a Large-Scale Amnesty for Immigrant Workers," CSEF Working Papers 625, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    9. Lars Ludolph, 2021. "The Value of Formal Host-Country Education for the Labour Market Position of Refugees: Evidence from Austria," CESifo Working Paper Series 9241, CESifo.
    10. Raux, Morgan, 2023. "Cultural differences and immigrants’ wages," Labour Economics, Elsevier, vol. 82(C).
    11. Ludolph, Lars, 2023. "The value of formal host-country education for the labour market position of refugees: evidence from Austria," LSE Research Online Documents on Economics 117392, London School of Economics and Political Science, LSE Library.

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