François Rycx

Labour markets struggle to be inclusive, while diversity is increasing. This literature review examines labour market challenges faced by first- and second-generation migrants in Belgium. We systematically review articles published between 2010 and 2023 in the Web of Science Core Collection to delineate underlying mechanisms, associated solutions, policy recommendations and literature gaps. The literature reveals that individuals with a migration background generally experience poorer labour market outcomes than natives. These outcomes vary based on specific origin and gender and persist from the first into the second generation. The mechanisms underlying these poorer outcomes are discrimination, individual preferences, and human and social capital differences. Recommendations for employers include implementing standardised hiring procedures and fostering awareness of discrimination among recruiters. On the employee side, investing in human capital, increasing labour market knowledge, and having competencies formally recognised can help to narrow employment gaps. Our review also advocates for policy refinement to combat biases and suggests that alternative pathways to attaining employment, such as self-employment and volunteering, are promising areas for future research.

Overeducation implies having a higher level of education than that required to perform a specific job. In this regard, a large body of literature shows that first-generation immigrants born in developing countries experience a higher likelihood of being overeducated than natives due in part to their foreign origin (i.e. immigrant overeducation). However, evidence is remarkably scarce regarding the overeducation of second-generation immigrants. Using a matched employer–employee database for Belgium over the period 1999–2016 and generalized ordered logit regressions, we contribute to the literature with one of the first studies on the intergenerational nexus between overeducation and origin among tertiary-educated workers. Our estimates suggest that immigrant overeducation disappears across two generations, except for workers from the Near and Middle East and the Maghreb. Moreover, we show that immigrant overeducation is a persistent intergenerational phenomenon among part-time workers. Our gender-interacted estimates confirm this conclusion for both male and female workers.

A large body of literature shows that first-generation immigrants born in developing countries experience a higher likelihood of being overeducated than natives (i.e. immigrant overeducation). However, evidence is remarkably scarce when it comes to the overeducation of second-generation immigrants. Using a matched employer-employee database for Belgium over the period 1999-2016 and generalized ordered logit regressions, we contribute to the literature with one of the first studies on the intergenerational nexus between overeducation and origin among tertiary-educated workers. We show that immigrant overeducation disappears across two generations when workers work full-time. However, immigrant overeducation is a persistent intergenerational phenomenon when workers work part-time. Our gender-interacted estimates endorse these findings for female and male immigrants.

This paper is the first to examine whether and how overeducation and overskilling, considered separately and in interaction, influence workers' job satisfaction at European level. It also investigates the moderating role of employment contracts. Our results, based on a unique pan-European database covering 28 countries in 2014, show that overeducation and overskilling reduce the probability of workers being satisfied with their jobs, but also that the drop in job satisfaction is almost double for genuinely overeducated workers (i.e. workers that are both overeducated and overskilled). These adverse effects on job satisfaction are found to be more pronounced among mismatched workers (whether overeducated, overskilled or both) on fixed-term rather than indefinite contracts.

This article examines the impact of a firm's position in Global Value Chains (GVCs) on wages according to workers' origin. Based on a unique linked employer–employee dataset regarding the Belgian manufacturing industry covering the 2002–2010 timespan, our estimates show that firms that are more upstream in the value chain pay on average significantly higher wages. However, the wage premium associated with upstreamness is also found to be unequally shared among workers. Unconditional quantile regressions and decomposition methods suggest that high‐wage workers born in developed countries benefit the most from being employed higher up the value chain, while workers born in developing countries appear to be unfairly rewarded.

Although many studies point to the significant influence of collective bargaining (CB) institutions on earnings inequalities, evidence on how these institutions shape poverty rates across developed economies remains surprisingly scarce. This paper explicitly addresses the relationship between CB systems and working‐age poverty ratesbeforeandaftertaxes and transfers in 24 developed countries over the period 1990–2015. Our results show that countries with a more centralized CB system, a more extended bargaining coverage rate and/or a higher trade union density display significantly lower poverty rates. However, these results only hold in a post‐tax benefit scenario. Controlling for country and time fixed effects and a wide range of covariates, our estimates indeed suggest that the poverty‐reducing effect of CB institutions stems from the political strength of trade unions in promoting public social spending rather than from any direct effect on earnings inequalities. Sensitivity tests for endogeneity and overlapping samples support this conclusion.

Using rich longitudinal matched employer‐employee data on Belgian firms, we explore the impact of workers’ tenure on firm productivity. To do so, we estimate production functions augmented with firm‐level measures of tenure. We deal with the endogeneity of standard inputs and tenure, which arises from unobserved firm heterogeneity and reverse causality, by applying a modified version of Ackerberg et al.’s (2015) control function method, which explicitly removes firm fixed effects. Consistently with recent theoretical predictions, our analyses point to positive, but decreasing, returns to tenure. We also find that the impact differs widely across several firm dimensions. Tenure is particularly beneficial for productivity in contexts characterized by a certain degree of routineness and low job complexity. Along the same lines, our findings indicate that tenure exerts stronger positive impacts in industrial and capital‐intensive firms, as well as in firms less reliant on ICT‐intensive and knowledge‐intensive processes.