Author:
Aldashev Alisher,Gernandt Johannes,Thomsen Stephan L.
Abstract
SummaryImmigrant-native wage differentials are observed in many countries, so in Germany. However, the available empirical literature for Germany defined the groups in consideration, immigrants and natives, by citizenship. This limits the explanatory power of the estimates since citizenship distinguishes foreigners and German nationals, but assigns naturalised immigrants (including the large group of ethnic Germans) to the latter group. Providing a more adequate definition based on the concept of origin we analyse the immigrant-native wage gap. Based on data from the German Socio-Economic Panel Study,we decompose the wage gap between native Germans, foreigners, and naturalised immigrants, and consider further subgroups in the analysis. In the literature, time of residence has been proven to be a relevant determinant of immigrants’ wages. For the natives, time of residence is perfectly collinear with age, and unequal sets of variables have to be considered.We therefore suggest an extension of the Oaxaca-Blinder decomposition technique. Our results show a substantial gap in earnings for all immigrants’ groups compared to natives. Discarding immigrants who completed education abroad reduces much of the immigrants’ wage gap. Hence, educational attainment in Germany is an important component of economic integration of immigrants, and degrees obtained abroad are valued less.
Subject
Economics and Econometrics,Social Sciences (miscellaneous),General Business, Management and Accounting
Reference16 articles.
1. Rising Wage Inequality in Germany of and;Gernandt;Journal Economics Statistics,2007
2. Soest Language and the Earnings of Immigrants Industrial and Labor Relations;Dustmann;Review,2002
3. Assimilation Changes in Cohort Quality and the Earnings of Immigrants of;Borjas;Journal Labor Economics,1985
4. Language Usage Participation Employment and Earnings : Evidence for Foreigners in West Germany with Multiple Sources of Selection;Aldashev;Labour Economics,2009
5. You Can t Take It with You ? Immigrant Assimilation and the Portabil ity of Human Capital of;Friedberg;Journal Labor Economics,2000
Cited by
18 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献