Ethnic identity and immigrants’ wages in Greece

This study investigates the impact of ethnic identity on Albanian, Bulgarian, Romanian, Georgian, and Russian wages in Greece. Treating ethnic identity as a composite of language, cultural habits, ethnic-self identification, societal interaction, and future citizenship plans, the estimations suggest that assimilation and integration are positively associated with immigrant wages, while separation and marginalisation are negatively associated with immigrant wages, after considering various demographic and pre- and post-immigration characteristics. In addition, dramatic wage growth for fully assimilated and integrated immigrants, and vast wage losses for totally separated and marginalised immigrants are estimated. A healthy Greek – as well as a European – immigration system should recognise labour immigration flows and the potential of repeat immigration and evaluate the cornerstone features of ethnic identity.

► The first Greek paper which associates ethnic identity and wages. ► Adds to the few European papers which study ethnic identity and wages. ► Hypotheses are developed after evaluating identity theory and empirical estimations. ► There is self-reporting of ethnic identity of key cultural elements. We show that assimilation and integration are positively associated with wages.