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The Immigrant Wage Gap in Germany

Author

Listed:
  • Alisher Aldashev

    (centre for European Economic Research (ZEW))

  • Johannes Gernandt

    (centre for European Economic Research (ZEW))

  • Stephan L. Thomsen

    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

Abstract

Immigrants consist of foreigners and citizens with migration background. We analyze the wage gap between natives and these two groups in Germany. The estimates show a substantial gap for both groups with respect to natives. Discarding immigrants who completed education abroad reduces much of the immigrants’ wage gap. This implies educational attainment in Germany is an important component of economic integration and degrees obtained abroad are valued less.

Suggested Citation

  • Alisher Aldashev & Johannes Gernandt & Stephan L. Thomsen, 2008. "The Immigrant Wage Gap in Germany," FEMM Working Papers 08019, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    • Handle: RePEc:mag:wpaper:08019
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Why Indian immigrants earn higher than others in America?
      by Murtaza Haider in eKonometrics on 2012-05-26 00:49:00

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    Cited by:

    1. Elke Lüdemann & Guido Schwerdt, 2010. "Migration Background and Educational Tracking: Is there a Double Disadvantage for Second-Generation Immigrants?," CESifo Working Paper Series 3256, CESifo.
    2. Amelie F. Constant & Annabelle Krause & Ulf Rinne & Klaus F. Zimmermann, 2017. "Reservation wages of first- and second-generation migrants," Applied Economics Letters, Taylor & Francis Journals, vol. 24(13), pages 945-949, July.
    3. 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.
    4. 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.
    5. Elke Lüdemann, 2011. "Schooling and the Formation of Cognitive and Non-cognitive Outcomes," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 39, May.
    6. 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).
    7. Boris Heizmann & Anne Busch-Heizmann & Elke Holst, 2017. "Immigrant Occupational Composition and the Earnings of Immigrants and Natives in Germany: Sorting or Devaluation?," International Migration Review, Wiley Blackwell, vol. 51(2), pages 475-505, June.
    8. Christoph Wunder & Regina T. Riphahn, 2014. "The dynamics of welfare entry and exit amongst natives and immigrants," Oxford Economic Papers, Oxford University Press, vol. 66(2), pages 580-604.
    9. Verena Dill, 2013. "Ethnic Concentration and Extreme Right-Wing Voting Behavior in West Germany," Research Papers in Economics 2013-02, University of Trier, Department of Economics.
    10. 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.
    11. 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.
    12. Eduard Storm, 2022. "Task specialization and the Native‐Foreign Wage Gap," LABOUR, CEIS, vol. 36(2), pages 167-195, June.
    13. Usamah Fayez Al-Farhan, 2010. "Changes in the Gender Wage Gap in Germany during a Period of Rising Wage Inequality 1999-2006: Was it Discrimination in the Returns to Human Capital?," SOEPpapers on Multidisciplinary Panel Data Research 293, DIW Berlin, The German Socio-Economic Panel (SOEP).
    14. 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.
    15. Alexandra Wicht & Nora Müller & Simone Haasler & Alexandra Nonnenmacher, 2019. "The Interplay between Education, Skills, and Job Quality," Social Inclusion, Cogitatio Press, vol. 7(3), pages 254-269.
    16. Silvia Loi & Joonas Pitkänen & Heta Moustgaard & Mikko Myrskylä & Pekka Martikainen, 2019. "Health of immigrant children: the role of immigrant generation, exogamous family setting, and family material and social resources," MPIDR Working Papers WP-2019-009, Max Planck Institute for Demographic Research, Rostock, Germany.
    17. Vernby, Kåre & Dancygier, Rafaela, 2018. "Employer discrimination and the immutability of ethnic hierarchies," Working Paper Series 2018:17, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    18. Bossler, Mario, 2014. "Sorting within and across establishments : the immigrant-native wage differential in Germany," IAB-Discussion Paper 201410, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    19. Schaffner, Sandra & Treude, Barbara, 2014. "The Effect of Ethnic Clustering on Migrant Integration in Germany," Ruhr Economic Papers 536, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    20. Anees, Muhammad & Sajjad, Muhammad & Ahmed, Ishfaq, 2011. "A counterfactual decomposition analysis of immigrants-natives earnings in Malaysia," Economics Discussion Papers 2011-51, Kiel Institute for the World Economy (IfW Kiel).
    21. Florian Lehmer & Johannes Ludsteck, 2011. "The Immigrant Wage Gap in Germany: Are East Europeans Worse Off?," ERSA conference papers ersa10p769, European Regional Science Association.

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    More about this item

    Keywords

    Immigration; wage gap; decomposition; Germany;
    All these keywords.

    JEL classification:

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

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