In many countries today, immigrants and other distinct ethnic minorities experience high unemployment, low employment rates, lower education levels, and lesser earnings in comparison to natives. While differences in the labor market attachment and performance of immigrants can be partially explained by human capital, time spent in the host country, nationality or country of origin, and other demographics, there is still a native–immigrant gap that remains to be explained. Studying ethnic identity is not a trivial task. Complex issues of identification and measurement can surface along the way.

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