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Immigration, Trade and Wages in Germany

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  • Yaya, Mehmet-Erdem

Abstract

This paper examines the effects of several macroeconomic variables such as GDP, imports, unemployment, immigration and emigration on the real wages and salaries of German laborers. Annual data for 49 years has been used to estimate twelve different regressions, trying to capture the effect of these variables on the real wages and salaries in Germany while considering the unification of West-East Germany with a dummy variable. The results are intriguing, and contradicting with most of the earlier literature. The paper concludes that wages are unresponsive to the macroeconomics changes most of the time while salaries are more sensitive to macroeconomic changes. The paper also contributes to the literature by investigating the effects of macroeconomic variables on the salary and wage changes of different gender groups.

Suggested Citation

  • Yaya, Mehmet-Erdem, 2005. "Immigration, Trade and Wages in Germany," MPRA Paper 505, University Library of Munich, Germany, revised Jun 2006.
    • Handle: RePEc:pra:mprapa:505
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    References listed on IDEAS

    as
    1. Noel Gaston & Doug Nelson, 2002. "The Employment and Wage Effects of Immigration: Trade and Labour Economics Perspectives," International Economic Association Series, in: David Greenaway & Richard Upward & Katharine Wakelin (ed.), Trade, Investment, Migration and Labour Market Adjustment, chapter 12, pages 201-235, Palgrave Macmillan.
    2. Henry Thompson, 2000. "International Markets," World Scientific Book Chapters, in: International Economics Global Markets and International Competition, chapter 1, pages 3-37, World Scientific Publishing Co. Pte. Ltd..
    3. de Melo, Jaime & Ettinger, Charles, 1998. "Determinants of Attitudes Towards Immigration: A Trade-Theoretic Approach," CEPR Discussion Papers 1877, C.E.P.R. Discussion Papers.
    4. Thompson, Henry, 1997. "Free trade and income redistribution across labor groups: Comparative statics for the U.S. economy," International Review of Economics & Finance, Elsevier, vol. 6(2), pages 181-192.
    5. Ulrich Kohli, 2002. "Migration and foreign trade: Further results," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(2), pages 381-387.
    6. repec:fth:geneec:98.03 is not listed on IDEAS
    7. John P. Haisken-DeNew & Klaus F. Zimmermann, "undated". "Wage and Mobility Effects of Trade and Migration," Working Papers _001, SELAPO Center for Human Resources.
    8. Stephen Drinkwater & Paul Levine & Emanuela Lotti & Joseph Pearlman, 2003. "The Economic Impact of Migration: A Survey," School of Economics Discussion Papers 0103, School of Economics, University of Surrey.
    9. Gaston, Noel & Nelson, Douglas, 2000. "Immigration and Labour-Market Outcomes in the United States: A Political-Economy Puzzle," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 16(3), pages 104-114, Autumn.
    10. Elise Brezis & Paul Krugman, 1996. "Immigration, investment, and real wages," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(1), pages 83-93, February.
    11. David Greenaway & Richard Upward & Katharine Wakelin (ed.), 2002. "Trade, Investment, Migration and Labour Market Adjustment," International Economic Association Series, Palgrave Macmillan, number 978-1-4039-2018-8.
    12. John P. Haisken-DeNew & Klaus F. Zimmermann, "undated". "Native Wage Impacts of Foreign Labor," Working Papers 9408, SELAPO Center for Human Resources.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Immigration; wages; international trade; Germany;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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