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Cultural differences and immigrants' wages

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  • Morgan Raux

    (Department of Economics and Management, Université du Luxembourg)

Abstract

In this paper, I investigate how cultural differences affect the labor-market performance of immigrant workers in Germany. I document a negative relationship between hourly wages and the cultural distance between immigrants' countries of origin and Germany. This result is robust across the three main indicators used in the gravity literature: linguistic, religious, and genetic distances. This cultural wage penalty disappears after five to ten years spent in Germany. Controlling for language proficiency as well as for selective in- and out-migration, these results highlight the cultural integration of immigrant workers. I finally provide evidence suggesting that lower wage progression may be explained by fewer job-to-job transitions.

Suggested Citation

  • Morgan Raux, 2021. "Cultural differences and immigrants' wages," DEM Discussion Paper Series 21-02, Department of Economics at the University of Luxembourg.
    • Handle: RePEc:luc:wpaper:21-02
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    File URL: http://hdl.handle.net/10993/45940
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    References listed on IDEAS

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    More about this item

    Keywords

    Cultural distance; Immigrant Workers.;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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