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Does citizenship matter? The economic impact of naturalizations in Germany

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  • Steinhardt, Max Friedrich

Abstract

This paper analyses whether citizenship acquisition affects the labour market performance of immigrants in Germany. The study uses actual micro data from the employment sample of the Institute for Employment Research, which covers more than 80% of the entire labour force in Germany. The econometric analysis has been carried out using panel data techniques, which allow to disentangle the effects of self-selection and legal impact of citizenship acquisition. Estimates from a pooled OLS specification suggest the existence of a wage premium for naturalized immigrants of both genders. Fixed effects estimates for males show an increased wage growth in the years following naturalization, consistent with the argument that naturalization increases the labour market opportunities of immigrants. Results for female employees indicate that the wage premium of naturalized women is solely the result of a positive self-selection process.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 19 (2012)
Issue (Month): 6 ()
Pages: 813-823

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Handle: RePEc:eee:labeco:v:19:y:2012:i:6:p:813-823

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Web page: http://www.elsevier.com/locate/labeco

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Keywords: Citizenship; Naturalization; Self-selection; Economic impact; Integration;

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References

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  4. Mazzolari, Francesca, 2007. "Dual Citizenship Rights: Do They Make More and Better Citizens?," IZA Discussion Papers 3008, Institute for the Study of Labor (IZA).
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Citations

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Cited by:
  1. Pieter Bevelander and Ravi Pendakur, 2012. "Citizenship acquisition, employment prospects and earnings: comparing two cool countries," EUI-RSCAS Working Papers 7, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
  2. Bevelander, Pieter & Pendakur, Ravi, 2011. "Citizenship and Employment – comparing two cool countries," CEPR Discussion Papers 8182, C.E.P.R. Discussion Papers.
  3. Ciro Avitabile & Irma Clots-Figueras & Paolo Masella, 2010. "The Effect of Birthright Citizenship on Parental Integration Outcomes," CSEF Working Papers 246, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  4. Tolciu, Andreia & Schaland, Ann-Julia & El-Cherkeh, Tanja, 2010. "Migrant entrepreneurship in Hamburg: Results from a qualitative study with Turkish entrepreneurs," HWWI Research Papers 3-22, Hamburg Institute of International Economics (HWWI).
  5. Max Friedrich Steinhardt, 2009. "The wage impact of immigration in Germany - new evidence for skill groups and occupations," Development Working Papers 273, Centro Studi Luca d\'Agliano, University of Milano.
  6. Otto, Alkis Henri & Steinhardt, Max Friedrich, 2012. "Immigration and election outcomes: Evidence from city districts in Hamburg," Working Paper Series 02/2012, Hamburg School of Business Administration (HSBA).
  7. Facundo Albornoz & Antonio Cabrales & Esther Hauk, 2011. "Immigration and the School System," UFAE and IAE Working Papers 888.11, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  8. Aysegul KAYAOGLU & Ayhan KAYA, 2011. "Is National Citizenship Withering Away? : Social Affiliations and Labor Market Integration of Turkish Origin Immigrants in Germany and France," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011033, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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