Wage Performance of Immigrants in Germany

Author:

Beyer Robert C. M.1

Affiliation:

1. The World Bank Group, Washington , D.C., United States of America

Abstract

Abstract This paper updates and deepens our understanding of the wage performance of immigrants in Germany. Using the German Socio-Economic Panel, it documents that immigrant workers initially earn on average 20% less than native workers with otherwise identical characteristics. The gap is smaller for immigrants from advanced countries, with good German language skills, and with a German degree, and larger for others. The gap declines gradually over time but at a decreasing rate and much faster for more recent cohorts. Less success in obtaining jobs with higher occupational autonomy explains half of the wage gap.

Funder

European Department of the International Monetary Fund

Publisher

Walter de Gruyter GmbH

Subject

Economics and Econometrics

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