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Wage discrimination and occupational segregation of foreign male workers in Germany

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  • Velling, Johannes

Abstract

We analyze wage discrimination against foreign male workers in Germany with respect to different nationality groups and focused on its interaction with occupational segregation. We found evidence of strong occupational segregation, which we mainly attribute to institutional factors but also to different endowments with human capital. For the measurement of wage discrimination itself we applied a tobit estimation procedure to the wage equation and carried out the usual Blinder/Oaxaca decomposition in the second step. We found a slight discrimination against all foreign male workers together, but considerably greater discrimination for some nationality groups such as East Europeans and persons from the Middle and Far East. The additional consideration of occupational segregation did not affect these results much. However, by far most 'of the wage differentials between Germans and foreign nationality groups could be attributed to different endowments with human capital.

Suggested Citation

  • 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.
    • Handle: RePEc:zbw:zewdip:9504
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Nanos, Panagiotis & Schluter, Christian, 2014. "The composition of wage differentials between migrants and natives," European Economic Review, Elsevier, vol. 65(C), pages 23-44.
    3. Bella Struminskaya, 2011. "Selbständigkeit von Personen mit Migrationshintergrund in Deutschland: Ursachen ethnischer Unternehmung," SOEPpapers on Multidisciplinary Panel Data Research 418, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Golder, Stefan M. & Straubhaar, Thomas, 1999. "Empirical Findings on the Swiss Migration Experience," IZA Discussion Papers 40, Institute of Labor Economics (IZA).
    5. Golder, Stefan M. & Straubhaar, Thomas, 1999. "Discrimination in the Swiss Labour Market: an Empirical Analysis," CEPR Discussion Papers 2100, C.E.P.R. Discussion Papers.
    6. Wielandt, Hanna, 2015. "Employment polarization and immigrant employment opportunities," SFB 649 Discussion Papers 2015-025, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    7. Golder, Stefan M., 2000. "Endowment or Discrimination? An Analysis of Immigrant-Native Earnings Differentials in Switzerland," Kiel Working Papers 967, Kiel Institute for the World Economy (IfW Kiel).
    8. Steiner, Viktor & Wagner, Kersten, 1996. "Has earnings inequality in Germany changed in the 1980's?," ZEW Discussion Papers 96-32, ZEW - Leibniz Centre for European Economic Research.
    9. repec:hum:wpaper:sfb649dp2015-025 is not listed on IDEAS
    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. Constant, Amelie F. & Massey, Douglas S., 2003. "Labor Market Segmentation and the Earnings of German Guestworkers," IZA Discussion Papers 774, Institute of Labor Economics (IZA).
    12. 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.
    13. 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].

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    More about this item

    Keywords

    Discrimination; occupational segregation; foreigners;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • 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
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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