Labor market entry of ethnic minority bachelor’s graduates in Germany: the role of human capital, field of study, and search behavior

Abstract

While occupational attainment of ethnic minorities has been widely studied for general populations, few studies exist on the labor market returns of college graduates. This study addresses this gap by focusing graduates of bachelor's degrees, which have been implemented during the Bologna Process in Germany. Using data from nationwide graduate surveys, I investigate ethnic differences in job access and job quality and assess a model of three explanatory approaches (human capital differences, differences in field of study, differences in search behavior). First, job access is more difficult for ethnic minorities, especially from Turkey, while differences in job quality are smaller and less consistent for most minority groups. Second, based on decomposition analyses, I show that differences in human capital and search behavior contribute substantially to increased unemployment rates among ethnic minorities and together explain about half of the ethnic gaps. Third, in addition to grades and work experience in college, human capital acquired prior to college, especially through vocational education and training, helps explain ethnic differences in job access. Fourth, while ethnic unemployment gaps are smaller among men than among women, the explanatory value of the tested model is similar for men and women.