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Assimilation and Cohort Effects for German Immigrants

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Author Info
Sebastian Gundel
Heiko Peters

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Abstract

Demographic change and the rising demand for highly qualified labor in Germany attracts notice to the analysis of immigration. In addition, the pattern of immigration changed markedly during the past decades. Therefore we use the latest data of the German Socioeconomic Panel up to the year 2006 in order to investigate the economic performance of immigrants. We perform regressions of three pooled cross sections (1986, 1996, 2006) to estimate assimilation and quality of immigrants as reflected by their earnings. Further we take the heterogeneity of immigrants into account by separating them by country of origin. The rising wage inequality in Germany since the mid nineties will also be considered. We find a negative wage gap and a yearly assimilation rate of 2.3 percent. Due to a changing immigration pattern the cohort quality is declining.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.74832.de/diw_sp0064.pdf
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Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers with number 64.

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Length: 27 p.
Date of creation: 2007
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Handle: RePEc:diw:diwsop:diw_sp64

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Keywords: Assimilation; immigrants; cohort quality; Germany;

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Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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  1. Robert J. LaLonde & Robert H. Topel, 1990. "The Assimilation of Immigrants in the U.S. Labor Markets," NBER Working Papers 3573, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Wei-Yin Hu, 2000. "Immigrant Earnings Assimilation: Estimates from Longitudinal Data," American Economic Review, American Economic Association, vol. 90(2), pages 368-372, May. [Downloadable!] (restricted)
  3. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October. [Downloadable!] (restricted)
  4. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October. [Downloadable!] (restricted)
  5. Constant, Amelie & Massey, Douglas S., 2003. "Labor Market Segmentation and the Earnings of German Guestworkers," IZA Discussion Papers 774, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Dustmann, C, 1993. "Earnings Adjustment of Temporary Migrants," Journal of Population Economics, Springer, vol. 6(2), pages 153-68, May.
  7. Johannes Gernandt & Friedhelm Pfeiffer, 2006. "Rising Wage Inequality in Germany," Working Papers of the Research Group Heterogenous Labor 06-12, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim. [Downloadable!]
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  8. Michael Fertig & Stefanie Schurer, 2007. "Earnings Assimilation of Immigrants in Germany: The Importance of Heterogeneity and Attrition Bias," SOEPpapers 30, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
  9. Heiko Peters, 2007. "Lohnungleichheit innerhalb und zwischen Bevölkerungsgruppen in Deutschland und den USA," SOEPpapers 36, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
  10. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December. [Downloadable!] (restricted)
  11. Schmidt, Christoph M., 1997. "Immigrant performance in Germany: Labor earnings of ethnic German migrants and foreign guest-workers," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(Supplemen), pages 379-397. [Downloadable!] (restricted)
  12. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-53, September. [Downloadable!] (restricted)
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