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

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  • Max Friedrich Steinhardt

    (Centro Studi Luca D’Agliano (LdA) and Hamburg Institute of International Economics (HWWI))

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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Bibliographic 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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Length: 34
Date of creation: 01 Jun 2009
Date of revision:
Handle: RePEc:csl:devewp:273

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

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References

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  1. John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, number abow91-1, July.
  2. George J. Borjas, 2009. "The Analytics of the Wage Effect of Immigration," NBER Working Papers 14796, National Bureau of Economic Research, Inc.
  3. Giovanni Peri & Gianmarco I.P. Ottaviano, 2005. "Rethinking the Gains from Immigration: Theory and Evidence from the U.S," Working Papers, University of California, Davis, Department of Economics 58, University of California, Davis, Department of Economics.
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  6. Pia M. Orrenius & Madeline Zavodny, 2003. "Does immigration affect wages? A look at occupation-level evidence," Working Papers, Federal Reserve Bank of Dallas 0302, Federal Reserve Bank of Dallas.
  7. Krishna Patel & Francis Vella, 2013. "Immigrant Networks and Their Implications for Occupational Choice and Wages," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1249-1277, October.
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  15. Max Friedrich Steinhardt, 2008. "Does citizenship matter? The economic impact of naturalizations in Germany," Development Working Papers, Centro Studi Luca d\'Agliano, University of Milano 266, Centro Studi Luca d\'Agliano, University of Milano.
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Citations

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Cited by:
  1. Anthony Edo, 2013. "The Impact of Immigration on Native Wages and Employment," Documents de travail du Centre d'Economie de la Sorbonne, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne 13064, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  2. Haas, Anette & Lucht, Michael & Schanne, Norbert, 2013. "Why to employ both migrants and natives? A study on task-specific substitutability," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 46(3), pages 201-214.
  3. Anthony Edo, 2013. "The Impact of Immigration on Native Wages and Employment," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00881131, HAL.
  4. Boll, Christina, 2010. "Mind the gap!: The amount of German mothers' care bill and its game theoretical issues," HWWI Research Papers 1-29, Hamburg Institute of International Economics (HWWI).
  5. Rafal Kierzenkowski & Isabell Koske, 2012. "Less Income Inequality and More Growth – Are they Compatible? Part 8. The Drivers of Labour Income Inequality – A Literature Review," OECD Economics Department Working Papers 931, OECD Publishing.
  6. Lucht, Michael & Haas, Anette, 2012. "Heterogeneous Firms and Substitution by Tasks: the Productivity Effect of Migrants," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62053, Verein für Socialpolitik / German Economic Association.
  7. Kuhlenkasper, Torben & Steinhardt, Max Friedrich, 2011. "Unemployment duration in Germany: A comprehensive study with dynamic hazard models and P-Splines," HWWI Research Papers 111, Hamburg Institute of International Economics (HWWI).
  8. Isabell Koske & Jean-Marc Fournier & Isabelle Wanner, 2012. "Less Income Inequality and More Growth – Are They Compatible? Part 2. The Distribution of Labour Income," OECD Economics Department Working Papers 925, OECD Publishing.

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