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Dynamic agglomeration effects of foreigners and natives – The role of experience in high-quality sectors, tasks and establishments

Author

Listed:
  • Niebuhr, Annekatrin

    (Institute for Employment Research (IAB), Nuremberg, Germany ; Univ. Kiel)

  • Peters, Jan Cornelius

    (Thünen Institute)

  • Roth, Duncan

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

Abstract

"This paper analyzes how dynamic agglomeration effects differ between foreign and native workers using administrative data on individual employment biographies. According to our results, both groups benefit, on average, equally from gathering work experience in large labor markets. The exception are low-skilled foreign workers, who receive a lower premium for big city experience than low-skilled natives. Providing new evidence on the sources of dynamic agglomeration effects, we show that this difference disappears once we consider the sectors, tasks and establishments, in which foreign and native workers gather experience. More generally, our results indicate that, on average, around 50% of the return of an additional year of experience gained in the densest regions can be ascribed to the acquisition of experience in higher-quality jobs in large cities." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Niebuhr, Annekatrin & Peters, Jan Cornelius & Roth, Duncan, 2022. "Dynamic agglomeration effects of foreigners and natives – The role of experience in high-quality sectors, tasks and establishments," IAB-Discussion Paper 202224, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:202224
    DOI: 10.48720/IAB.DP.2224
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    Keywords

    Bundesrepublik Deutschland ; IAB-Open-Access-Publikation ; Auswirkungen ; Ballungsraum ; Berufserfahrung ; Bildungsertrag ; Einwanderer ; Großstadt ; Inländer ; Integrierte Erwerbsbiografien ; ländlicher Raum ; Lohnhöhe ; Lohnunterschied ; Niedrigqualifizierte ; qualifikationsspezifische Faktoren ; sektorale Verteilung ; 2000-2019;
    All these keywords.

    JEL classification:

    • 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
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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