The Labor Market Performance of Immigrants in Germany
IMF Working Papers, January 21, 2016
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- The Labor Market Performance of Immigrants in Germany
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Bibliographic details
- Authors: Robert C. M. Beyer
- Published: January 21, 2016
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781498376112.001
Data and Methodology
- Uses a large survey (GSOEP) to analyze labor market performance of immigrants in Germany.
- Employs Mincer-type wage equation and regression output (keywords indicate regression-based analysis and attention to participation, unemployment, and wage distribution).
Main Findings
- New immigrant workers earn on average 20 percent less than native workers with otherwise identical characteristics.
- The wage gap is:
- Smaller for immigrants from advanced countries.
- Smaller for immigrants with good German language skills.
- Smaller for immigrants with a German degree.
- Larger for other immigrant groups.
- The wage gap declines gradually over time.
- Less success in obtaining jobs with higher occupational autonomy explains half of the wage gap.
- Immigrants are initially:
- Less likely to participate in the labor market.
- 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.