This study examines the mechanisms and relationships between ethnic and cultural identities and economic outcomes among Kurdish and Turkish migrants from Turkey and their descendants in Germany. It extends migrant adaptation theories by exploring the crucial role of multiple and hybrid identities using a mixed-methods approach. The results highlight differences between migrants and descendants, indicating that economically successful descendants embrace multiple identities, including German identity, more than migrants. In contrast, economically unsuccessful descendants primarily identify as Turkish, whilst migrants more closely align with Kurdish identity. The findings indicate that, contrary to assimilationist approaches, economic success is closely related to the coexistence of source and destination country identities and the flexibility to adjust their relative importance over time. The study identifies human capital, social capital, and engagement within or beyond the ethnic economy, alongside diverse social and business networks, as key mechanisms linking identities to economic outcomes. It concludes that integration policies fostering multiple identities, rather than complete assimilation, are likely to be more effective in improving migrants’ economic success. The study therefore calls for further research into the impact of multiple and hybrid identities on economic outcomes, including the underlying mechanisms.
