Labour Market Outcomes of Second Generation Immigrants: How Heterogeneous Are They Really?
Abstract
This study comprehensively portrays the labour market outcomes of second generation immigrants in Germany. Special attention is attributed to observable heterogeneity in terms of country of origin and unobservable heterogeneity in terms of parental human capital, neighbourhood effects, and mixed marriage background. Pooled, static and dynamic panel data models, and a decomposition analysis are used to estimate and explain the average differences in hourly wages and unemployment probabilities separately for men and women. The results suggest that the second generation cannot be considered as one homogeneous group: some groups perform better, equally or worse than comparable German natives. Also, relative outcomes in wages depend mainly on observable characteristics, whereas relative unemployment risks are mainly driven by unobservable factors.Download Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.Bibliographic Info
Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2008n14.Length: 46 pages
Date of creation: Aug 2008
Date of revision:
Handle: RePEc:iae:iaewps:wp2008n14
Contact details of provider:
Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
Phone: +61 3 8344 2100
Fax: +61 3 8344 2111
Email:
Web page: http://www.melbourneinstitute.com/
More information through EDIRC
Related research
Keywords:Other versions of this item:
- Stefani Schurer, 2008. "Labour Market Outcomes of Second Generation Immigrants: How Heterogeneous Are They Really?," Ruhr Economic Papers 0057, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, and Immigrants; Non-labor Discrimination
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-08-31 (All new papers)
- NEP-LAB-2008-08-31 (Labour Economics)
- NEP-MIG-2008-08-31 (Economics of Human Migration)
References
References listed on IDEASPlease 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.:
- John P. Haisken-DeNew & Felix Büchel & Gert G. Wagner, 1997.
"Assimilation and Other Determinants of School Attainment in Germany: Do Immigrant Children Perform as Well as Germans?,"
Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research,
DIW Berlin, German Institute for Economic Research, vol. 66(1), pages 169-179.
- John P. Haisken-DeNew & Felix Büchel & Gert G. Wagner, 1996. "Assimilation and Other Determinants of School Attainment in Germany: do Immigrant Children Perform as Well as Germans?," Discussion Papers of DIW Berlin 141, DIW Berlin, German Institute for Economic Research.
- George J. Borjas, 1992.
"The Intergenerational Mobility of Immigrants,"
NBER Working Papers
3972, National Bureau of Economic Research, Inc.
- Borjas, George J, 1993. "The Intergenerational Mobility of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 113-35, January.
- Aydemir, Abdurrahman & Sweetman, Arthur, 2006. "First and Second Generation Immigrant Educational Attainment and Labor Market Outcomes: A Comparison of the United States and Canada," IZA Discussion Papers 2298, Institute for the Study of Labor (IZA).
- Jan Brenner, 2007. "Effects of Job Entry Restrictions on Economic Integration - Evidence for Recent Ethnic German Immigrants," Ruhr Economic Papers 0025, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- David G. Blanchflower & Andrew J. Oswald, 2005.
"The Wage Curve Reloaded,"
NBER Working Papers
11338, National Bureau of Economic Research, Inc.
- Blanchflower, David G. & Oswald, Andrew J., 2005. "The Wage Curve Reloaded," IZA Discussion Papers 1665, Institute for the Study of Labor (IZA).
- Christian Dustmann & Arthur van Soest, 2001.
"Language Fluency And Earnings: Estimation With Misclassified Language Indicators,"
The Review of Economics and Statistics,
MIT Press, vol. 83(4), pages 663-674, November.
- Dustmann, C. & Soest, A.H.O. van, 1998. "Language Fluency and Earnings: Estimation with Misclassified Language Indicators," Discussion Paper 1998-120, Tilburg University, Center for Economic Research.
- Dustmann, C & van Soest, A, 2001. "Language fluency and earnings: Estimation with misclassified language indicators," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
- Behrman, Jere R & Taubman, Paul, 1976. "Intergenerational Transmission of Income and Wealth," American Economic Review, American Economic Association, vol. 66(2), pages 436-40, May.
- Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
- Barth, Erling & Bratsberg, Bernt & Raaum, Oddbjørn, 2003.
"Local Unemployment and the Relative Wages of Immigrants: Evidence from the Current Population Surveys,"
Memorandum
20/2002, Oslo University, Department of Economics.
- Bernt Bratsberg & Erling Barth & Oddbjørn Raaum, 2006. "Local Unemployment and the Relative Wages of Immigrants: Evidence from the Current Population Surveys," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 243-263, May.
- Uhlendorff, Arne & Zimmermann, Klaus F, 2006.
"Unemployment Dynamics among Migrants and Natives,"
CEPR Discussion Papers
5872, C.E.P.R. Discussion Papers.
- Arne Uhlendorff & Klaus F. Zimmermann, 2006. "Unemployment Dynamics among Migrants and Natives," Discussion Papers of DIW Berlin 617, DIW Berlin, German Institute for Economic Research.
- Uhlendorff, Arne & Zimmermann, Klaus F., 2006. "Unemployment Dynamics among Migrants and Natives," IZA Discussion Papers 2299, Institute for the Study of Labor (IZA).
- Regina T. Riphahn, 2003.
"Cohort effects in the educational attainment of second generation immigrants in Germany: An analysis of census data,"
Journal of Population Economics,
Springer, vol. 16(4), pages 711-737, November.
- Riphahn, Regina T., 2001. "Cohort Effects in the Educational Attainment of Second Generation Immigrants in Germany: An Analysis of Census Data," IZA Discussion Papers 291, Institute for the Study of Labor (IZA).
- Borjas, George J, 1992.
"Ethnic Capital and Intergenerational Mobility,"
The Quarterly Journal of Economics,
MIT Press, vol. 107(1), pages 123-50, February.
- George J. Borjas, 1991. "Ethnic Capital and Intergenerational Mobility," NBER Working Papers 3788, National Bureau of Economic Research, Inc.
- Regina T. Riphahn, 2005. "Are there Diverging Time Trends in the Educational Attainment of Nationals and Second Generation Immigrants?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 225(3), pages 325-346, May.
- David Card, 2004.
"Is the New Immigration Really So Bad?,"
CReAM Discussion Paper Series
0402, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- David Card, 2005. "Is the New Immigration Really so Bad?," Economic Journal, Royal Economic Society, vol. 115(507), pages F300-F323, November.
- Card, David, 2004. "Is the New Immigration Really So Bad?," IZA Discussion Papers 1119, Institute for the Study of Labor (IZA).
- David Card, 2005. "Is the New Immigration Really So Bad?," NBER Working Papers 11547, National Bureau of Economic Research, Inc.
- Thomas N. Daymonti & Paul J. Andrisani, 1984. "Job Preferences, College Major, and the Gender Gap in Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 19(3), pages 408-428.
- Gang, Ira N. & Zimmermann, Klaus F., 1999.
"Is Child like Parent? Educational Attainment and Ethnic Origin,"
IZA Discussion Papers
57, Institute for the Study of Labor (IZA).
- Ira N. Gang & Klaus F. Zimmermann, 2000. "Is Child like Parent? Educational Attainment and Ethnic Origin," Journal of Human Resources, University of Wisconsin Press, vol. 35(3), pages 550-569.
- Ira N. Gang & Klaus F. Zimmermann, 1999. "Is Child Like Parent? Educational Attainment and Ethnic Origin," Departmental Working Papers 199614, Rutgers University, Department of Economics.
- Gang, Ira & Zimmermann, Klaus F, 1996. "Is Child Like Parent? Educational Attainment and Ethnic Origin," CEPR Discussion Papers 1461, C.E.P.R. Discussion Papers.
- Fertig, Michael & Schmidt, Christoph M, 2001.
"First- and Second-Generation Migrants in Germany - What Do We Know and What Do People Think,"
CEPR Discussion Papers
2803, C.E.P.R. Discussion Papers.
- Fertig, Michael & Schmidt, Christoph M., 2001. "First- and Second-Generation Migrants in Germany - What Do We Know and What Do People Think," IZA Discussion Papers 286, Institute for the Study of Labor (IZA).
- David M. Drukker, 2003. "Testing for serial correlation in linear panel-data models," Stata Journal, StataCorp LP, vol. 3(2), pages 168-177, June.
- Jeffrey M. Wooldridge, 2005.
"Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 20(1), pages 39-54.
- Jeffrey M Wooldridge, 2002. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," CeMMAP working papers CWP18/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991.
"Unemployment: Macroeconomic Performance and the Labour Market,"
OUP Catalogue,
Oxford University Press, number 9780198284345, September.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173, September.
- Jakobsen, Vibeke & Smith, Nina, 2003.
"The Educational Attainment of the Children of the Danish ‘Guest Worker’ Immigrants,"
IZA Discussion Papers
749, Institute for the Study of Labor (IZA).
- Jakobsen, Vibeke & Smith, Nina, 2003. "The educational attainment of the children of the Danish ‘guest worker’ immigrants," Working Papers 03-6, University of Aarhus, Aarhus School of Business, Department of Economics.
- David Card & Christoph M. Schmidt, 2003. "Symposium on “Second-generation immigrants and the transition to ethnic minorities”," Journal of Population Economics, Springer, vol. 16(4), pages 707-710, November.
- Alireza Behtoui, 2004. "Unequal Opportunities for Young People with Immigrant Backgrounds in the Swedish Labour Market," LABOUR, CEIS, vol. 18(4), pages 633-660, December.
- Bauer, Thomas & Sinning, Mathias, 2005.
"Blinder-Oaxaca Decomposition for Tobit Models,"
CEPR Discussion Papers
5309, C.E.P.R. Discussion Papers.
- Thomas Bauer & Mathias Sinning, 2010. "Blinder-Oaxaca decomposition for Tobit models," Applied Economics, Taylor and Francis Journals, vol. 42(12), pages 1569-1575.
- Thomas Bauer & Mathias Sinning, 2005. "Blinder-Oaxaca Decomposition for Tobit Models," RWI Discussion Papers 0032, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
- Bauer, Thomas K. & Sinning, Mathias, 2005. "Blinder-Oaxaca Decomposition for Tobit Models," IZA Discussion Papers 1795, Institute for the Study of Labor (IZA).
- Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-75, June.
- Dustmann, Christian, 1994.
"Speaking Fluency, Writing Fluency and Earnings of Migrants,"
Journal of Population Economics,
Springer, vol. 7(2), pages 133-56.
- Dustmann, Christian, 1994. "Speaking Fluency, Writing Fluency and Earnings of Migrants," CEPR Discussion Papers 905, C.E.P.R. Discussion Papers.
- Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
- Baltagi, Badi H. & Blien, Uwe & Wolf, Katja, 2007. "Phillips Curve or wage curve? : evidence from West Germany: 1980-2004," IAB Discussion Paper 200714, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Constant, Amelie F. & Massey, Douglas S., 2003. "Labor Market Segmentation and the Earnings of German Guestworkers," IZA Discussion Papers 774, Institute for the Study of Labor (IZA).
- Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 225-38, January.
- Arulampalam, Wiji, 1999. " Practitioners' Corner: A Note on Estimated Coefficients in Random Effects Probit Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(4), pages 597-602, November.
- Thomas Bauer & Mathias Sinning, 2006.
"An Extension of the Blinder-Oaxaca Decomposition to Non-Linear Models,"
RWI Discussion Papers
0049, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
- Thomas Bauer & Mathias Sinning, 2008. "An extension of the Blinder–Oaxaca decomposition to nonlinear models," AStA Advances in Statistical Analysis, Springer, vol. 92(2), pages 197-206, May.
- Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-89, December.
- Michael Fertig & Stefanie Schurer, 2007.
"Labour Market Outcomes of Immigrants in Germany – The Importance of Heterogeneity and Attrition Bias,"
Ruhr Economic Papers
0020, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- Fertig, Michael & Schurer, Stefanie, 2007. "Labour Market Outcomes of Immigrants in Germany: The Importance of Heterogeneity and Attrition Bias," IZA Discussion Papers 2915, Institute for the Study of Labor (IZA).
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- repec:ese:iserwp:2010-30 is not listed on IDEAS
- George Messinis, 2009. "Earnings and Languages in the Family: Second-Generation Australians," The Economic Record, The Economic Society of Australia, vol. 85(s1), pages S59-S73, 09.
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:iae:iaewps:wp2008n14For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jenny Chen).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

