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Why getting Swiss citizenship can be worth up to 10,000 francs per year

Immigrants to Switzerland who became naturalized citizens saw their earnings rise significantly compared to those who did not obtain the passport, a study showed Wednesday.

A Swiss passport. Photo by Claudio Schwarz | @purzlbaum on Unsplash
A Swiss passport. Photo by Claudio Schwarz | @purzlbaum on Unsplash

Average annual earnings were 13.5 percent greater for immigrants 15 years after they narrowly won naturalization through a local referendum, equal to about 5,500 Swiss Francs ($5,500), against immigrants who lived in the country but were unable to obtain nationality.

“These findings support the argument that citizenship can alleviate some of the labor-market discrimination that impedes immigrant integration,” wrote the authors of the paper that appeared in the journal Science Advances.

Dominik Hangartner, an associate professor of public policy at ETH Zurich and one of the study’s co-authors, told AFP that some employers saw citizenship as a credential that an immigrant plans to stay in Switzerland.

READ MORE: How to apply for Swiss citizenship

“At least some employers treat this as signal that these are people who are successfully integrated,” he said.

Switzerland was a particularly useful country to study because of its system of naturalization referendums, in which residents of cities or towns vote to decide whether immigrants should receive the status.

The system is used by around a third of the country’s more than 2,000 municipalities.

In 46 German-speaking municipalities, until 2003, these votes were held by secret ballot as opposed to a show of hands, allowing the researchers to access the ballots and determine who won citizenship by a narrow margin and equally who lost it by a narrow margin.

READ MORE: Where in Switzerland will your citizenship application cost you the most?

They combined this with data from the applicants’ mandatory pension contributions to find people who were economically comparable at the start of the so-called “natural experiment” and to track how their income changed.

The researchers wrote that looking at applicants who narrowly won or lost the status through this process allowed them to eliminate selection bias, “since such close cases can be tipped one way or the other by current events or even the weather and are essentially arbitrary” or in effect randomly assigned.

The team looked at almost 4,000 applicants for naturalization between 1970 and 2003.

Winning citizenship proved especially beneficial for marginalized groups such as immigrants from Turkey and Yugoslavia, who saw their earnings rise by an average of 10,000 Swiss Francs annually over the 15 years.

“What citizenship does is that it helps to come closer to what Swiss natives with similar education and similar productivity would earn,” said Hangartner, and it helped strengthen communities by increasing tax revenues and reducing welfare spending.

“Citizenship does help to get closer to closing the gap,” he said.

A version of this story was first published in December 2019. 

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EXPLAINED: How Zurich has simplified the Swiss citizenship process

Voters in the Swiss canton of Zurich on May 15th approved a proposal to simplify naturalisation requirements for the canton's 350,000 foreigners. Here's what you need to know.

EXPLAINED: How Zurich has simplified the Swiss citizenship process

On May 15th, voters in the Swiss canton of Zurich overwhelmingly approved a proposal to simplify the canton’s naturalisation process for foreigners. 

Several questions were on the ballot, including reduced fees for younger people who pursue Swiss citizenship, longer waiting times for those convicted of criminal offences and a shift towards online naturalisation. A summary of the results can be seen here

For foreigners living in Zurich and wanting to acquire the famous red passport, perhaps the most important question on the ballot was making the requirements uniform on a cantonal basis, rather than allowing them to differ from municipality to municipality, as is the current case. 

Here’s what you need to know. Please note that while Zurich voters approved the changes, as at May 16th they have not been formally implemented. 

‘Uniform basic requirements’ for citizenship flagged

While anyone who is successfully naturalised will get the same famous red passport no matter where they do so, the actual process differs dramatically depending on where you do it. 

The primary naturalisation process takes place at a communal level, which means there can be different requirements from municipality to municipality. 

With 26 cantons, four official languages and century after century of tradition, these traditions and cultural quirks have had plenty of time to ferment and develop. 

As The Local has covered several times before, this includes a knowledge test about specifics in the local commune which often leads to absurd consequences, while in some places local villagers and neighbours will have a say on whether a person should receive citizenship. 

People have been knocked back for a range of reasons, including not liking hiking, not knowing enough about local zoo animals, not knowing enough about cheese and just not being deserving enough.  

READ MORE: The ten most surprising questions on Switzerland’s citizenship exam

Recognising the difficulties, the Swiss government in 2018 revised the Civil Rights Act, which included uniform basic requirements for citizenship. 

The cantons however retain a degree of flexibility when it comes to implementing the rules, which is why they are being put to a vote on May 15th. 

Basic knowledge test

Each naturalisation process includes a basic knowledge test. 

The tests are carried out at a municipal level and vary from place to place, prompting Swiss national broadcaster SRF to report in 2017 that Switzerland “has as many naturalisation procedures as there are municipalities”. 

Zurich, Switzerland’s most populous canton, has 162 municipalities. While it might be a slight exaggeration to say there are 162 unique tests, the questions can vary greatly. 

The May 15th vote standardised the process by establishing a basic knowledge test for the entire canton. 

The test includes 350 questions about Swiss history, tradition, politics and culture, with a focus on Zurich. 

Anyone taking the test will be given 50 questions at random and must answer at least 30 correctly to pass. 

What other requirements were up for a vote on May 15th?

In addition to the above, there are three other changes forecast as part of the new rules. 

People under 18 will face tighter rules for naturalisation if they are found guilty of a crime. 

Referendum: Zurich to vote on lower voting age

According to the new law, juveniles will not be able to apply for naturalisation for two years after a minor crime (i.e. shoplifting, simple bodily harm, property damage) or for five years for major crimes (i.e. robbery, murder, rape). 

The changes will also lay the groundwork for naturalisation processes to take place online. A handful of cantons including Bern and Vaud already do this, but no such online system is established in Zurich. 

Finally, the law will also reduce the cost for younger people to apply for citizenship. 

More information is available here. 

What did the parties say before the vote?

Although polling was minimal, the changes have won widespread support among Swiss political parties. 

All of the major Swiss political parties support the change, with only the right-wing Swiss People’s Party (SVP) opposed. 

Writing in the Swiss press, the SVP’s Diego Bonato suggested multicultural Zurich should have tighter naturalisation rules than the rest of the country rather than the other way around to ensure proper integration. 

“The higher the multicultural proportion of the population, the more closely you have to pay attention to naturalisation” 

While the SVP is Switzerland’s largest and most popular political party, it has comparatively lower influence in Zurich. 

The Social Democrats, who hold the mayorship in the city, are in favour of the proposal and hit back at suggestions it did not promote integration. 

“The new citizenship law is shaped by the idea that early and rapid naturalisation promotes integration. However, citizenship should be the the end of successful integration, not the beginning.”

“Foreigners who wish to remain in our country permanently and become part of Swiss society must society, must (still) undergo an integration process lasting several years.”

Who was able to vote?

Much like Switzerland’s men taking until the 1970s to decide whether women should get the vote, it is perhaps a paradox that foreigners’ fates will be put to a vote without their input. 

Only Swiss citizens have the right to vote in the most cases, although there are limited voting rights in some cases at a municipal level in some parts of the country. 

Efforts to provide similar rights in Zurich have continued to stall. 

Around one quarter of Zurich’s population do not have the right to vote, although it can be as high as 50 percent in some municipalities. 

Approximately 1.5 million people live in Zurich. 

More information about voting in Zurich, including details about the upcoming referendum votes, can be found here. 

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