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Naturalization and Labor Market Performance of Immigrants in Germany

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  • Regina T. Riphahn
  • Salwan Saif

Abstract

Naturalization may be a relevant policy instrument affecting immigrant integration in host-country labor markets. We study the effect of naturalization on labor market outcomes of immigrants in Germany. We apply recent survey data and exploit a reform of naturalization rules in an instrumental variable estimation. In our sample of recent immigrants, linear regression yields positive correlations between naturalization and beneficial labor market outcomes. Once we account for the endogeneity of naturalization most coefficients decline in magnitude and lose statistical significance: male immigrants' labor market outcomes do not benefit significantly from naturalization. Naturalization reduces the risks of unemployment and welfare dependence for female immigrants. For males and females, the propensity to hold a permanent contract increase as a consequence of naturalization. The results are robust to modifications of samples and the instrument.

Suggested Citation

  • Regina T. Riphahn & Salwan Saif, 2018. "Naturalization and Labor Market Performance of Immigrants in Germany," CESifo Working Paper Series 7217, CESifo.
    • Handle: RePEc:ces:ceswps:_7217
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    References listed on IDEAS

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    1. Christina Gathmann & Nicolas Keller, 2018. "Access to Citizenship and the Economic Assimilation of Immigrants," Economic Journal, Royal Economic Society, vol. 128(616), pages 3141-3181, December.
    2. Ciro Avitabile & Irma Clots-Figueras & Paolo Masella, 2013. "The Effect of Birthright Citizenship on Parental Integration Outcomes," Journal of Law and Economics, University of Chicago Press, vol. 56(3), pages 777-810.
    3. Saurer, Judith & Felfe, Christina, 2014. "Granting Birthright Citizenship - A Door Opener for Immigrant Children's Educational Participation and Success?," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100548, Verein für Socialpolitik / German Economic Association.
    4. Christoph Sajons, 2016. "Does granting citizenship to immigrant children affect family outmigration?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(2), pages 395-420, April.
    5. Friederike von Haaren-Giebel & Malte Sandner, 2016. "Naturalisation and on-the-job training: evidence from first-generation immigrants in Germany," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-28, December.
    6. Bernt Bratsberg & James F. Ragan & Zafar M. Nasir, 2002. "The Effect of Naturalization on Wage Growth: A Panel Study of Young Male Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 568-597, July.
    7. Sajons, Christoph & Clots-Figueras, Irma, 2014. "Birthright citizenship and education - Do immigrant children need a passport to thrive?," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100470, Verein für Socialpolitik / German Economic Association.
    8. DeVoretz, Don J. & Irastorza, Nahikari, 2017. "Economic Theories of Citizenship?," IZA Discussion Papers 10495, Institute of Labor Economics (IZA).
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    Citations

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    Cited by:

    1. García-Suaza, Andrés & Mondragón-Mayo, Angie & Sarango-Iturralde, Alexander, 2024. "Occupational downgrading of Venezuelan migrants in Colombia: Do work permits Improve occupational mobility?," Documentos de Trabajo 21028, Universidad del Rosario.
    2. Giesecke, Matthias & Schuß, Eric, 2019. "Heterogeneity in marginal returns to language training of immigrants," IAB-Discussion Paper 201919, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Jacobsen Jannes & Krieger Magdalena & Schikora Felicitas & Schupp Jürgen, 2021. "Growing Potentials for Migration Research using the German Socio-Economic Panel Study," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 241(4), pages 527-549, August.
    4. Kerstin Bruckmeier & Regina T. Riphahn & Jürgen Wiemers, 2021. "Misreporting of program take-up in survey data and its consequences for measuring non-take-up: new evidence from linked administrative and survey data," Empirical Economics, Springer, vol. 61(3), pages 1567-1616, September.
    5. Bruckmeier, Kerstin & Riphahn, Regina T. & Wiemers, Jürgen, 2019. "Benefit underreporting in survey data and its consequences for measuring non-take-up: new evidence from linked administrative and survey data," IAB-Discussion Paper 201906, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Nils Braakmann, 2021. "Immigration Status Uncertainty and Mental Health—Evidence from Brexit," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 60(4), pages 521-548, October.

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    More about this item

    Keywords

    citizenship; migration; naturalization; labor market outcomes; instrumental variables;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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