IDEAS home Printed from https://ideas.repec.org/p/iab/iabdpa/201512.html
   My bibliography  Save this paper

Job mobility as a new explanation for the immigrant-native wage gap : a longitudinal analysis for the German labor market

Author

Listed:
  • Brenzel, Hanna

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Reichelt, Malte

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"Theoretically, wage gaps between migrants and natives can be explained by human capital theory through either depreciation in human capital with migration or differences in endowments. However, even after considering human capital measures, an unexplained difference remains. We assume that differences in the employment trajectories of migrants and natives contribute to wages that diverge after labor market entrance. Utilizing a rich longitudinal data set (ALWA-ADIAB), we analyze the job mobility of migrants and natives in Germany and distinguish among voluntary, involuntary, internal and other job changes. Indeed, we find evidence for differences in transition patterns and - using several fixed-effects regressions - are able to explain a substantial part of the gap between migrants' and natives' hourly wages by differences in job change behavior." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Brenzel, Hanna & Reichelt, Malte, 2015. "Job mobility as a new explanation for the immigrant-native wage gap : a longitudinal analysis for the German labor market," IAB-Discussion Paper 201512, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:201512
    as

    Download full text from publisher

    File URL: https://doku.iab.de/discussionpapers/2015/dp1215.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brücker, Herbert & Bertoli, Simone & Fernández-Huertas Moraga, Jesús, 2013. "The European Crisis and Migration to Germany: Expectations and the Diversion of Migration Flows," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79693, Verein für Socialpolitik / German Economic Association.
    2. George J. Borjas, 2021. "The Economic Benefits from Immigration," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 13, pages 411-430, World Scientific Publishing Co. Pte. Ltd..
    3. Leilanie Basilio & Thomas K. Bauer & Anica Kramer, 2017. "Transferability of Human Capital and Immigrant Assimilation: An Analysis for Germany," LABOUR, CEIS, vol. 31(3), pages 245-264, September.
    4. Gibbons, Robert & Katz, Lawrence F, 1991. "Layoffs and Lemons," Journal of Labor Economics, University of Chicago Press, vol. 9(4), pages 351-380, October.
    5. George J. Borjas, 2021. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 2, pages 3-29, World Scientific Publishing Co. Pte. Ltd..
    6. Barth, Erling & Bratsberg, Bernt & Raaum, Oddbjørn, 2012. "Immigrant wage profiles within and between establishments," Labour Economics, Elsevier, vol. 19(4), pages 541-556.
    7. Tushar Agrawal, 2014. "Gender and caste-based wage discrimination in India: some recent evidence [Geschlecht und Kaste-ansässige Lohndiskriminierung in Indien: Einige Neue Beweise]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 47(4), pages 329-340, December.
    8. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
    9. Friedberg, Rachel M, 2000. "You Can't Take It with You? Immigrant Assimilation and the Portability of Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 221-251, April.
    10. Chiswick, Barry R. & Miller, Paul W., 2009. "The international transferability of immigrants' human capital," Economics of Education Review, Elsevier, vol. 28(2), pages 162-169, April.
    11. Kristen Keith & Abagail McWilliams, 1999. "The Returns to Mobility and Job Search by Gender," ILR Review, Cornell University, ILR School, vol. 52(3), pages 460-477, April.
    12. Helena Skyt Nielsen & Michael Rosholm & Nina Smith & Leif Husted, 2004. "Qualifications, discrimination, or assimilation? An extended framework for analysing immigrant wage gaps," Empirical Economics, Springer, vol. 29(4), pages 855-883, December.
    13. Antoni, Manfred & Jacobebbinghaus, Peter & Seth, Stefan, 2011. "ALWA-Befragungsdaten verknüpft mit administrativen Daten des IAB 1975-2009 (ALWA-ADIAB 7509)," FDZ-Datenreport. Documentation on Labour Market Data 201105, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. Mark Gius, 2014. "The impact of job mobility on earnings: using occupational and industrial classifications to identify job changes," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(2), pages 181-190, March.
    15. Florian Lehmer & Johannes Ludsteck, 2011. "The Immigrant Wage Gap in Germany: Are East Europeans Worse Off?," ERSA conference papers ersa10p769, European Regional Science Association.
    16. Christian Dustmann & Sonia C. Pereira, 2008. "Wage Growth and Job Mobility in the United Kingdom and Germany," ILR Review, Cornell University, ILR School, vol. 61(3), pages 374-393, April.
    17. Aldashev Alisher & Gernandt Johannes & Thomsen Stephan L., 2012. "The Immigrant-Native Wage Gap in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(5), pages 490-517, October.
    18. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
    19. Robert H. Topel & Michael P. Ward, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 439-479.
    20. Wolfgang Seifert, 1997. "Occupational and Economic Mobility and Social Integration of Mediterranean Migrants in Germany," European Journal of Population, Springer;European Association for Population Studies, vol. 13(1), pages 1-16, March.
    21. Dustmann, C, 1993. "Earnings Adjustment of Temporary Migrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 6(2), pages 153-168, May.
    22. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LP, number musr.
    23. Velling, Johannes, 1995. "Wage discrimination and occupational segregation of foreign male workers in Germany," ZEW Discussion Papers 95-04, ZEW - Leibniz Centre for European Economic Research.
    24. Cornell, Bradford & Welch, Ivo, 1996. "Culture, Information, and Screening Discrimination," Journal of Political Economy, University of Chicago Press, vol. 104(3), pages 542-571, June.
    25. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    26. Garcia Perez, Jose Ignacio & Rebollo Sanz, Yolanda, 2005. "Wage changes through job mobility in Europe: A multinomial endogenous switching approach," Labour Economics, Elsevier, vol. 12(4), pages 531-555, August.
    27. Agrawal, Tushar, 2014. "Gender and caste-based wage discrimination in India : some recent evidence," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 47(4), pages 329-340.
    28. Mortensen, Dale T, 1988. "Wages, Separations, and Job Tenure: On-the-Job Specific Training or Matching?," Journal of Labor Economics, University of Chicago Press, vol. 6(4), pages 445-471, October.
    29. Sylvia Fuller & Todd F. Martin, 2012. "Predicting Immigrant Employment Sequences in the First Years of Settlement," International Migration Review, Wiley Blackwell, vol. 46(1), pages 138-190, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wiemers, Jürgen, 2015. "Endogenizing take-up of social assistance in a microsimulation model : a case study for Germany," IAB-Discussion Paper 201520, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Gross, Christiane & Gurr, Thomas & Jungbauer-Gans, Monika & Lang, Sebastian, 2020. "Prejudices against the unemployed - empirical evidence from Germany," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 54(1), pages 1-3.
    3. Christoph, Bernhard, 2015. "Empirische Maße zur Erfassung von Armut und materiellen Lebensbedingungen : Ansätze und Konzepte im Überblick," IAB-Discussion Paper 201525, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Weigand Roland & Wanger Susanne & Zapf Ines, 2018. "Factor Structural Time Series Models for Official Statistics with an Application to Hours Worked in Germany," Journal of Official Statistics, Sciendo, vol. 34(1), pages 265-301, March.
    5. Zapf, Ines, 2015. "Who profits from working-time accounts? : empirical evidence on the determinants of working-time accounts on the employers' and employees' side," IAB-Discussion Paper 201523, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Möller, Joachim, 2015. "Verheißung oder Bedrohung? : die Arbeitsmarktwirkungen einer vierten industriellen Revolution," IAB-Discussion Paper 201518, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Florian Lehmer & Johannes Ludsteck, 2015. "Wage Assimilation of Foreigners: Which Factors Close the Gap? Evidence From Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(4), pages 677-701, December.
    2. Kai Ingwersen & Stephan L. Thomsen, 2021. "The immigrant-native wage gap in Germany revisited," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(4), pages 825-854, December.
    3. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    4. Bedaso, Fenet, 2021. "The Labor Market Integration of Refugees and other Migrants in Germany," GLO Discussion Paper Series 884, Global Labor Organization (GLO).
    5. Hirsch, Boris & Jahn, Elke J. & Toomet, Ott & Hochfellner, Daniela, 2014. "Do better pre-migration skills accelerate immigrants' wage assimilation?," Labour Economics, Elsevier, vol. 30(C), pages 212-222.
    6. Carl Lin, 2016. "How Do Immigrants From Taiwan Fare In The U.S. Labor Market?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(05), pages 1-38, December.
    7. Robert C. M. Beyer, 2017. "The Performance of Immigrants in the German Labor Market," SOEPpapers on Multidisciplinary Panel Data Research 892, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Smolny, Werner & Rieber, Alexander, 2016. "Labour market integration of immigrants - Evidence for the German guest workers," VfS Annual Conference 2016 (Augsburg): Demographic Change 145629, Verein für Socialpolitik / German Economic Association.
    9. Prummer, Anja & Siedlarek, Jan-Peter, 2014. "Institutions And The Preservation Of Cultural Traits," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 470, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    10. Ilana Redstone Akresh, 2008. "Occupational Trajectories of Legal US Immigrants: Downgrading and Recovery," Population and Development Review, The Population Council, Inc., vol. 34(3), pages 435-456, September.
    11. Valentine Fays & Benoît Mahy & François Rycx & Mélanie Volral, 2021. "Wage discrimination based on the country of birth: do tenure and product market competition matter?," Applied Economics, Taylor & Francis Journals, vol. 53(13), pages 1551-1571, March.
    12. Jahn, Elke & Hirsch, Boris, 2012. "Is there monopsonistic discrimination against immigrants? First evidence from linked employer employee data," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 65417, Verein für Socialpolitik / German Economic Association.
    13. Zerrin Salikutluk & Johannes Giesecke & Martin Kroh, 2020. "The Situation of Female Immigrants on the German Labour Market: A Multi-Perspective Approach," SOEPpapers on Multidisciplinary Panel Data Research 1072, DIW Berlin, The German Socio-Economic Panel (SOEP).
    14. Florian Lehmer & Johannes Ludsteck, 2012. "Wage Assimilation of Immigrants: Which Factors Close the Gap? – Evidence from Germany," ERSA conference papers ersa12p262, European Regional Science Association.
    15. Fertig, Michael & Schurer, Stefanie, 2007. "Labour Market Outcomes of Immigrants in Germany – The Importance of Heterogeneity and Attrition Bias," Ruhr Economic Papers 20, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    16. Kevin Pineda-Hernández & François Rycx & Mélanie Volral, 2022. "Moving Up the Social Ladder? Wages of First- and Second-Generation Immigrants from Developing Countries," LIDAM Discussion Papers IRES 2022025, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    17. Beyer, Robert, 2016. "The Labor Market Performance of Immigrants in Germany," VfS Annual Conference 2016 (Augsburg): Demographic Change 145799, Verein für Socialpolitik / German Economic Association.
    18. Ene Ikpebe & Michael C. Seeborg, 2018. "Earnings Performance of African Immigrants: Evidence from the American Community Survey," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(2), pages 215-230, June.
    19. Michael Chletsos & Stelios Roupakias, 2017. "Native-immigrant wage differentials in Greece: discrimination and assimilation," Applied Economics, Taylor & Francis Journals, vol. 49(17), pages 1732-1736, April.
    20. Henna Busk & Signe Jauhiainen, 2022. "The Careers of Immigrants in Finland: Empirical Evidence for Genders and Year of Immigration," Journal of International Migration and Integration, Springer, vol. 23(4), pages 2009-2030, December.

    More about this item

    Keywords

    Bundesrepublik Deutschland ; ausländische Arbeitnehmer ; berufliche Mobilität ; Einwanderer ; IAB-Datensatz Arbeiten und Lernen ; Inländer ; Lohnunterschied ; Arbeitskräftemobilität ; Ursache ; Arbeitsplatzwechsel ; zwischenbetriebliche Mobilität ; 1993-2008;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iab:iabdpa:201512. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: IAB, Geschäftsbereich Wissenschaftliche Fachinformation und Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/iabbbde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.