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Differences in Labor Supply by Birthplace and Family Composition in Switzerland: the Role of Human Capital and Household Income

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Abstract

In Switzerland, mothers’ involvement in paid work often occurs on a part-time basis. The mechanisms driving the decisions and opportunities to access part-time employment differ between native and immigrant populations. In this paper, we address the extent to which the employment behaviors of the female population differ by birthplace and family situation. Using data from the Swiss Labour Force Survey, we decompose the effect of human capital and household income on participation and the number of hours worked. Contrasting patterns of employment emerge among women born in Switzerland, within the EU, and outside the EU, especially in the presence of resident children. Women’s education has a stronger positive effect on participation for natives, whereas household income is proved to have greater influence on the participation outcomes for the foreign-born population. Nevertheless, compared with immigrant women having the same level of education and household income, natives work the fewest number of hours.

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Notes

  1. For instance, in a February 2014 referendum, Swiss citizens approved the popular initiative “Stop Mass Migration,” which aims to reintroduce an annual quota for EU and EFTA nationals.

  2. Among the reasons explaining the availability of part-time jobs, one can mention that employers’ contributions to the social insurance system (2nd pillar) are not mandatory for annual wages less than 21,150 Swiss francs—a level that is approximately equal to one third of the average wage.

  3. One reason lies in the expected economic return on hiring a migrant. One might think that, given the higher cost of hiring a foreign-born worker (e.g., administrative procedures, time for adaptation to a new working environment, and national norms), employers would favor full-timers over part-timers to assure that the benefits of hiring a foreign worker outweigh the investment.

  4. For a short period following the Second World War, female labor immigration exceeded male immigration for both demographic and economic reasons (e.g., demand for female workers in the textile industry) (Wanner 2004).

  5. With the exception of Slovenia, which is grouped with other EU member states.

  6. Switzerland grants citizenship on a jus sanguinis basis. This means that second- or third-generation immigrants do not automatically hold Swiss nationality.

  7. This exception is made to account for our inability to attribute the mean value of the length of stay for the Swiss-born population.

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Funding

This research has received economic support from the project: NCCR On the Move (The Migration-Mobility Nexus). Subprojects: Inventory of Individual Statistical Data on Migration to, from, and within Switzerland in a Post-Census World and Mapping the Demographics of the New Forms of Mobility and Measuring their Socioeconomic Impact. Funded by the National Center of Competence in Research (Switzerland). Period: 2014–2017.

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  1. Institut de démographie et socioéconomie, Université de Genève, Boulevard du Pont-d’Arve 40, 1204, Geneva, Switzerland

    Julie Lacroix & Elena Vidal-Coso

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  1. Julie Lacroix
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  2. Elena Vidal-Coso
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Correspondence to Julie Lacroix.

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Employment rates and number of hours worked in different family compositions, foreign-born and Swiss-born populations

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Lacroix, J., Vidal-Coso, E. Differences in Labor Supply by Birthplace and Family Composition in Switzerland: the Role of Human Capital and Household Income. Int. Migration & Integration 20, 659–684 (2019). https://doi.org/10.1007/s12134-018-0623-8

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