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The wage impact of immigration in Germany - new evidence for skill groups and occupations

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Author Info
Max Friedrich Steinhardt (Centro Studi Luca D’Agliano (LdA) and Hamburg Institute of International Economics (HWWI))

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Abstract

The paper contributes to the ongoing debate about the adequate technique to identify the impact of immigration. Initially the regression analysis on the basis of education-experience cells reveals that the impact of immigration on native wages in Germany is negative, but small. The subsequent analysis on the basis of occupations using the same data yields a considerably higher adjustment coefficient and indicates strong wage effects within primary service occupations with a magnitude comparable to results for the US. The analysis therefore demonstrates that the use of formal qualifications as an exclusive classification criterion may lead to an underestimation of the impact of immigration.

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Publisher Info
Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 273.

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Date of creation: 01 Jun 2009
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Handle: RePEc:csl:devewp:273

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Related research
Keywords: Labour market impact of migration; skill group approach; occupations; fixed effects model;

Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Krishna Patel & Francis Vella, 2007. "Immigrant Networks and Their Implications for Occupational Choice and Wages," IZA Discussion Papers 3217, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Christian Dustmann & Francesca Fabbri & Ian Preston, 2005. "The Impact of Immigration on the British Labour Market," Economic Journal, Royal Economic Society, vol. 115(507), pages F324-F341, November. [Downloadable!] (restricted)
  3. Bernd Fitzenberger & Reinhold Schnabel & Gaby Wunderlich, 2004. "The gender gap in labor market participation and employment: A cohort analysis for West Germany," Journal of Population Economics, Springer, vol. 17(1), pages 83-116, February. [Downloadable!] (restricted)
  4. Grossman, Jean Baldwin, 1982. "The Substitutability of Natives and Immigrants in Production," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 596-603, November. [Downloadable!] (restricted)
  5. Brücker, Herbert & Jahn, Elke J., 2008. "Migration and the Wage Curve: A Structural Approach to Measure the Wage and Employment Effects of Migration," IZA Discussion Papers 3423, Institute for the Study of Labor (IZA). [Downloadable!]
  6. George J. Borjas, 2008. "Labor Outflows and Labor Inflows in Puerto Rico," Journal of Human Capital, University of Chicago Press, vol. 2(1), pages 32-68. [Downloadable!]
  7. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December. [Downloadable!] (restricted)
  8. Giovanni Peri & Chad Sparber, 2009. "Task Specialization, Immigration, and Wages," American Economic Journal: Applied Economics, American Economic Association, vol. 1(3), pages 135-69, July. [Downloadable!]
    Other versions:
  9. Jörn-Steffen Pischke & Johannes Velling, 1997. "Employment Effects Of Immigration To Germany: An Analysis Based On Local Labor Markets," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 594-604, November. [Downloadable!] (restricted)
  10. Mitchell A. Petersen, 2009. "Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches," Review of Financial Studies, Oxford University Press for Society for Financial Studies, vol. 22(1), pages 435-480, January. [Downloadable!] (restricted)
    Other versions:
  11. Holger Bonin, 2005. "Wage and Employment Effects of Immigration to Germany: Evidence from a Skill Group Approach," IZA Discussion Papers 1875, Institute for the Study of Labor (IZA). [Downloadable!]
  12. Gianmarco I.P. Ottaviano & Giovanni Peri, 2006. "Rethinking the Gains from Immigration: Theory and Evidence from the U.S," Working Papers 2006.52, Fondazione Eni Enrico Mattei. [Downloadable!]
    Other versions:
  13. Liesbet Okkerse, 2008. "How To Measure Labour Market Effects Of Immigration: A Review," Journal of Economic Surveys, Blackwell Publishing, vol. 22(1), pages 1-30, 02. [Downloadable!] (restricted)
  14. George J. Borjas, 2009. "The Analytics of the Wage Effect of Immigration," NBER Working Papers 14796, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2009-11-17.

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