Naturalization and Citizenship: Who Benefits?

This review of the literature by IZA World of Labor finds that citizenship among immigrants in Europe improves their economic and social integration. Gains were greatest among naturalized immigrants from poorer countries who experienced a substantial increase in wages. Naturalized immigrant women also fared well, often entering into sectors of the economy with higher paying salaries following naturalization. The authors state that policy analysis is needed for country-specific case studies to determine whether the benefits of citizenship are a main driver in increasing economic and social integration or if certain categories of immigrants are better positioned for success in the labor market. For instance, naturalized U.S. citizens tend to have higher education levels and earning potential than non-naturalized U.S. citizens. The wages of naturalized men in the U.S. grew 25 percent more relative to non-naturalized immigrants over a period of 10 years. To what extent did education levels contribute to these wage gains, as opposed to citizen status? Based on existing evidence, the article concludes that citizenship substantially benefits immigrants in the labor market and, as such, liberal naturalization laws allow for immigrants to better integrate into the economy and society, benefitting both the immigrant and host country.

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