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The Labor Market Performance of Immigrants in Germany

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Abstract
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.

Suggested Citation

  • Beyer, Robert, 2016. "The Labor Market Performance of Immigrants in Germany," VfS Annual Conference 2016 (Augsburg): Demographic Change 145799, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc16:145799
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    4. Facundo Quiroga‐Martínez & Esteban Fernández‐Vázquez, 2021. "Education as a key to reduce spatial inequalities and informality in Argentinean regional labour markets," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(1), pages 177-189, February.
    5. Panu Poutvaara & Daniela Wech, 2017. "Integrating Refugees into the Labor Market – a Comparison of Europe and the United States," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(4), pages 32-43, 02.
    6. Hai Hien Huynh & Duc Hong Vo, 2023. "The Effects of Migration on Unemployment: New Evidence from the Asian Countries," Sustainability, MDPI, vol. 15(14), pages 1-13, July.
    7. Guillaume Marois & Patrick Sabourin & Alain Bélanger, 2020. "Implementing Dynamics of Immigration Integration in Labor Force Participation Projection in EU28," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 39(2), pages 339-363, April.
    8. Ferrucci, Edoardo, 2020. "Migration, innovation and technological diversion: German patenting after the collapse of the Soviet Union," Research Policy, Elsevier, vol. 49(9).
    9. repec:ces:ifodic:v:14:y:2017:i:4:p:19267786 is not listed on IDEAS
    10. Panu Poutvaara & Daniela Wech, 2017. "Integrating Refugees into the Labor Market – a Comparison of Europe and the United States," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(04), pages 32-43, February.
    11. Swati Mehta Dhawan, 2018. "Financial Inclusion of Germany s Refugees: Current Situation and Road Ahead," Working Paper 5dbf343c-d373-4942-a9ed-c, European Microfinance Network.
    12. Ademmer, Esther & Barslund, Mikkel & Benček, David & Di Salvo, Mattia & Groll, Dominik & Hoxhaj, Rezart & Kadkoy, Omar & Lanati, Mauro & Laurentsyeva, Nadzeya & Lücke, Matthias & Ludolph, Lars & Pizzu, 2018. "2018 MEDAM Assessment Report on Asylum and Migration Policies in Europe. Flexible Solidarity: A comprehensive strategy for asylum and immigration in the EU," MEDAM Assessment Report on Asylum and Migration Policies in Europe, Mercator Dialogue on Asylum and Migration (MEDAM), number 182240.
    13. Guizhen Ma, 2019. "Similar or Different? A Comparison of Environmental Behaviors of US-Born Whites and Chinese Immigrants," Journal of International Migration and Integration, Springer, vol. 20(4), pages 1203-1223, November.
    14. Dietl, M & Skrok & Benalcazar, P & Gątkowski, M & Rockett, K, 2017. "Pendency and Thickets," Economics Discussion Papers 19979, University of Essex, Department of Economics.
    15. Maryna Tverdostup & Tiiu Paas, 2017. "The Role Of Cognitive Skills And Their Use At Work In Explaining The Immigrant-Native Wage Gap," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 104, Faculty of Economics and Business Administration, University of Tartu (Estonia).

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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