The effect of educational level on ethnic differences in labor market position in the Netherlands

Abstract

Aim. The aim of this research was to increase the knowledge of the effect of educational level on the differences between ethnic minority groups and native Dutch in labor market position. Discrimination could partially explain these differences, and the statistical discrimination theory indicates that the effect of educational level differs on the ground of ethnical background. This study examined the extent to which the differences in labor market position occur between ethnic minority groups in the Netherlands and native Dutch, examined whether educational level as an effect on this relation, and examined whether those differences decrease when educational level increases. Methods. Two binary logistic regression analyses with moderation were used to examine this effect. Labor market position is measured with probability of being unemployed and probability to have a temporary contract in comparison with a permanent contract. Results. Results show, as expected, that people with a Moroccan, Turkish, Surinamese or Antillean background are more likely to be unemployed. Besides, when employed, minority groups, with the exception of people with a Surinamese background, are more likely to have a temporary employment contract. However, this study has found no significant effect of employment level on this relation. Conclusion. As the effect of educational level on labor market outcomes does not differ between ethnic minority groups and native Dutch, this study could not state that the disadvantaged position of minority groups decreases when educational level increases. Further research is required to examine why less perceived discrimination does not show relatively lower disadvantaged chances on indicators of labor market position.