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The relation between citizenship and labor market position is complex. Besides a causal impact from citizenship towards labor market position, several selection mechanisms may cause particular immigrants to choose for naturalization. We investigate the empirical relation on the basis of German and Dutch survey data. For the Netherlands we find a positive relation between citizenship and labor market position, while for Germany we find mixed results as citizenship is negatively related to tenured employment. The contrasting results may be explained by institutional differences. In Germany, economic self-reliance is more strictly required for naturalization than in the Netherlands. This may lead to a stronger incentive to naturalize for workers with a temporary contract in Germany.
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Euwals et al. (2010) studied this question.
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