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The Labor Market Performance of Immigrants in Germany
Author: Robert C. M. Beyer
Series:
IMF Working Papers
Volume/Issue:
Volume 2016: Issue 006
Language:
English
Publication Date:
21 Jan 2016
DOI:
https://doi.org/10.5089/9781498376112.001
ISBN:
9781498376112
ISSN:
1018-5941
Pages:
39
Keywords:
WP; skill downgrading; real wage; gap of immigrant; immigrants' wages catch-up; wage performance; migration; Germany; labor market; wages; unemployment; participation; Mincer-type wage equation; regression output; wage distribution; wage benefit; immigrants matter; Wage gap; Labor markets; Southern Europe
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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The paper uses a large survey (GSOEP) to analyze the labor market performance of immigrants in Germany. It finds that new immigrant workers earn on average 20 percent 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. Less success in obtaining jobs with higher occupational autonomy explains half of the wage gap. Immigrants are also initially less likely to participate in the labor market and more likely to be unemployed. While participation fully converges after 20 years, immigrants always remain more likely to be unemployed than the native labor force.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund