Skip to main content
Go to the home page of the European Commission (opens in new window)
English en
CORDIS - EU research results
CORDIS

How Work Organizations Shape Ethnic Stratification across Immigrant Generations: Assimilation, Segregation, and Workplace Contexts

Periodic Reporting for period 4 - OrgMIGRANT (How Work Organizations Shape Ethnic Stratification across Immigrant Generations: Assimilation, Segregation, and Workplace Contexts)

Reporting period: 2025-03-01 to 2025-12-31

Large-scale immigration has introduced new and salient dimensions of ethnic stratification in Europe’s affluent liberal democracies. Successfully incorporating disadvantaged, newly arrived immigrant minorities represents a critical societal challenge for the 21st century. Despite a vast literature on labor market inequalities between immigrants and natives, the majority of existing research relies exclusively on data about individual workers, yielding limited insights into the role of firms and workplace contexts. To date, no systematic effort has exploited linked employer–employee data to assess how organizational contexts shape economic assimilation across immigrant generations. ORGMIGRANT fills this gap by focusing on workplaces as key sites where contemporary processes of ethnic stratification and immigrant assimilation unfold at the micro level. From a policy perspective, understanding the specific organizational mechanisms behind workplace inequalities will facilitate targeted interventions to enhance the labor market incorporation of immigrant minorities.

The distinguishing feature of ORGMIGRANT is its organizational approach to ethnic stratification in the labor market, emphasizing how economic assimilation evolves across immigrant generations. The primary objective is to demonstrate how work organizations both shape and reflect evolving patterns of ethnic stratification from one generation to the next. An additional goal is to advance broader social-scientific theories of immigrant assimilation. These objectives are operationalized through three intermediary aims: (1) applying organizational theories to immigrant assimilation research; (2) methodological innovation through advanced analytical techniques for linked employer–employee data; and (3) generating policy-relevant knowledge on organizational sources of immigrant assimilation.

ORGMIGRANT investigates workplace segregation and explores how and why inequality and ethnic boundary salience between immigrant-background and native-majority workers vary by organizational context. Thus, we not only assess whether immigrant minorities are assimilating, but also extend existing theories by identifying specific organizational conditions under which assimilation is promoted or constrained. To achieve theoretical advancement, we conduct empirical studies of Norwegian workplaces combined with comparative analyses across several high-income countries (Canada, Denmark, Germany, France, Netherlands, Spain, Sweden, and the United States). Leveraging economy-wide linked employer–employee data and state-of-the-art statistical methods, our analyses precisely situate workers within their workplace contexts, enabling an in-depth understanding of immigrant–native labor market inequalities.
The project examined why immigrant-background and native-majority workers were unevenly distributed across workplaces, how these patterns changed across immigrant generations, and which organizational processes accounted for both integration and the persistence of inequality. Rather than focusing solely on individual characteristics, the analyses placed workplaces and organizations at the center of explanation.

A first set of findings concerned workplace segregation and its underlying mechanisms. Using Norwegian register data, the project documented clear intergenerational change. Native-born children of immigrants were less segregated from natives than immigrants, particularly in higher-status jobs, although segregation remained pronounced in lower-status organizational contexts. Differences in occupational and educational sorting accounted for part of this pattern, but network-related mechanisms also played an important role. Immigrants were more likely than natives to work with residential neighbors, especially coethnic neighbors, linking residential segregation directly to workplace clustering. Hiring practices further reinforced these patterns, as managerial composition and co-ethnic ties influenced recruitment into immigrant-dense workplaces. Workplace composition also affected job stability. Immigrants were less likely to leave jobs with higher shares of immigrant coworkers, particularly when coworkers shared skills or national origin, while these retention effects were substantially weaker among their native-born children.

A second set of results addressed wage inequality and career outcomes. The project showed that most immigrant–native pay gaps arose from sorting into different occupations and workplaces rather than from unequal pay within the same job. Within-job wage gaps existed but were modest, and they were markedly smaller for children of immigrants. The analyses also showed that access to better jobs was shaped by organizational screening processes and ethnic signals, and that the timing of immigration during childhood had lasting consequences. Later-arriving childhood immigrants n faced larger adult earnings penalties driven by systematic occupational sorting, lower work intensity, and more limited access to high-wage employers.

Finally, the project assessed whether these organizational mechanisms generalized beyond a single national setting. Comparative analyses across nine high-income countries showed a strikingly similar pattern. Immigrant–native wage gaps were driven primarily by segregation between jobs and workplaces rather than by unequal pay within jobs. Together, these findings established a new stylized fact about the organizational origins of immigrant–native wage inequality in advanced labor markets. The resulting study represented a major scientific contribution of the project and attracted substantial academic readership as well as broad news coverage across Europe.
ORGMIGRANT advanced the state of the art by integrating research on immigrant assimilation with research on organizational inequality. While prior work had largely focused either on individual outcomes across generations or on inequality within and between firms without a generational perspective, the project showed that immigrant assimilation was fundamentally shaped by access to jobs, workplaces, and career ladders.

Empirically, the project demonstrated that key dimensions of ethnic inequality changed across immigrant generations, but unevenly across organizational contexts. Native-born children of immigrants were more likely than immigrants to work in higher-paying and less immigrant-dense workplaces, to rely less on coethnic and residential job networks, and to experience weaker coethnic retention effects. At the same time, segregation persisted in lower-status jobs, managerial gatekeeping remained important, and ethnic signals continued to shape access to jobs, indicating that organizational boundaries weakened across generations without disappearing.

A central contribution was to shift attention from unequal pay for equal work to inequality in access to work organizations. Across multiple studies, sorting into occupations and workplaces accounted for most immigrant–native disparities, while within-job pay inequality played a more limited role, especially for the second generation. Comparative analyses across nine high-income countries confirmed that this pattern generalized across institutional contexts, establishing organizational sorting as a central mechanism of ethnic inequality in advanced labor markets.
Earnings gaps between immigrants to nine high-income countries and people born there
Ethnic and economic workplace segregation by immigrant background
My booklet 0 0