Ethnic Inequalities in Labour Market- The Challenge of Competitive Development in the German Mittelstand and Ethnic Diversity Management

Abstract:

In response to the lastrecession, Germany emerged as a resilient economy which can be stated to the shortage of skilled workers and a powerful position of the middle class, known as German Mittelstand. Future prospects depend on employees as key actors. Nevertheless, debates of demographicchangesare present so that resident immigrant’s labor integrationbecomes more important. But recent studies investigated ethnic inequalities in labour market intensifyingbrain drain. Researchers claim about discriminatory attitude against ethnic minorities, confirmed by two ECJ judgments in 2012 and 2011 (numbers: C-415/10 and C-104/10).This work in its initial stagesis based on the research gap examiningdiversity activities in German SMEs as a solutionto become an attractive employer by concentrating on highly qualified immigrants. It raises the question whether the application of diversity management is a possible intervention tool in order to counteract against ethnic inequalities in German labour market. Empirical research based on a case study is proposed.