Adsera, Alicia (University of Illinois at Chicago, University of Chicago and IZA Bonn) Chiswick, Barry R. (University of Illinois at Chicago and IZA Bonn)
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The paper uses the 1994-2000 waves of the European Community Household Panel to conduct a systematic analysis of the earnings of immigrants as compared to native workers, in particular to test whether there is any systematic variation in the labor market performance of immigrants across gender related to duration in the destination, schooling, age at immigration, country of origin, or country of destination. We find a significant negative effect of immigrant status on individual earnings of around 40% at the time of arrival in the pooled sample, although the difference is somewhat smaller for women. Those differences, however, vary greatly across countries with migrants in Germany and Portugal faring best relative to natives, and those in Sweden, Denmark, Luxembourg or Spain the worst, particularly among non-EU born migrants. Gender differences are more important among those born outside the European Union, with women doing relatively better than men. Among men, those from Asia, Latin-America and Eastern Europe receive the lowest earnings. Latin- American and Eastern European women are at the bottom of the women’s distribution. Earnings increase with duration in the destination and the foreign born "catch-up" to the native born, others variables being the same, at around 18 years in the destination among both men and women. Education matters more for women in terms of explaining earnings, whereas language skills are relatively more important for men.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
1432.
Find related papers by JEL classification: J1 - Labor and Demographic Economics - - Demographic Economics J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers F22 - International Economics - - International Factor Movements and International Business - - - International Migration
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Thomsen, Stephan L. & Gernandt, Johannes & Aldashev, Alisher, 2008.
"The Immigrant Wage Gap in Germany,"
ZEW Discussion Papers
08-089, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
[Downloadable!]
Other versions:
Alisher Aldashev & Johannes Gernandt & Stephan L. Thomsen, 2008.
"The Immigrant Wage Gap in Germany,"
FEMM Working Papers
08019, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
[Downloadable!]