Wage and Employment Effects of Immigration to Germany: Evidence from a Skill Group Approach
Abstract
The paper analyzes the labor market impact of migration by exploiting variation in the labor supply of foreigners across groups of workers with the same level of education but different work experience. Estimates on the basis of German register data for the period 1975-97 do not confirm the hypothesis that penetration of migrants into skill cells has a significant negative effect on the earnings and employment opportunities of native men. The results indicate that a 10 percent rise of the share of immigrants in the workforce would in general reduce wages by less than one percent and not increase unemployment. Though the adverse effects appear stronger for less-qualified and older workers, the evidence altogether sharply contrasts that from a parallel study for the United States indicating a consistent and substantial negative impact of an immigrant labor supply shock on native competitors.Download Info
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1875.
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Length: 33 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:iza:izadps:dp1875
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Related research
Keywords: labor market effects of immigration; skill groups; wage elasticity; Germany;Find related papers by JEL classification:
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, and Immigrants; 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-20 (All new papers)
- NEP-EEC-2005-12-20 (European Economics)
- NEP-HRM-2005-12-20 (Human Capital & Human Resource Management)
- NEP-LAB-2005-12-20 (Labour Economics)
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.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Steinhardt, Max Friedrich, 2009.
"The wage impact of immigration in Germany: New evidence for skill groups and occupations,"
HWWI Research Papers
1-23, Hamburg Institute of International Economics (HWWI).
- Max Friedrich Steinhardt, 2009. "The wage impact of immigration in Germany - new evidence for skill groups and occupations," Development Working Papers 273, Centro Studi Luca d\'Agliano, University of Milano.
- Gordon H. Hanson, 2008.
"The Economic Consequences of the International Migration of Labor,"
NBER Working Papers
14490, National Bureau of Economic Research, Inc.
- Gordon H. Hanson, 2009. "The Economic Consequences of the International Migration of Labor," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 179-208, 05.
- Longhi, Simonetta & Nijkamp, Peter & Poot, Jacques, 2008.
"Meta-Analysis of Empirical Evidence on the Labour Market Impacts of Immigration,"
IZA Discussion Papers
3418, Institute for the Study of Labor (IZA).
- Simonetta LONGHI & Peter NIJKAMP & Jacques POOT, 2008. "Meta-Analysis Of Empirical Evidence On The Labour Market Impacts Of Immigration," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 27, pages 161-191.
- S. Longhi & P. Nijkamp & J. Poot, 2008. "Meta-Analysis of Empirical Evidence on the Labour Market Impacts of Immigration," Population Studies Centre Discussion Papers dp-67, University of Waikato, Population Studies Centre.
- Ortega, J. & Verdugo, G., 2011.
"Immigration and the Occupational Choice of Natives: a Factor Proportions Approach,"
Working papers
335, Banque de France.
- Javier Ortega & Gregory Verdugo, 2011. "Immigration and the Occupational Choice of Natives: A Factor Proportions Approach," CEP Discussion Papers dp1043, Centre for Economic Performance, LSE.
- Ortega, Javier & Verdugo, Gregory, 2011. "Immigration and the Occupational Choice of Natives: A Factor Proportions Approach," IZA Discussion Papers 5451, Institute for the Study of Labor (IZA).
- Véronique Rémy & Bertrand Lhommeau, 2009. "Les politiques d’allégements ont-elles un effet sur la mobilité salariale des travailleurs à bas salaire ?," Économie et Statistique, Programme National Persée, vol. 429(1), pages 21-49.
- Gabriele Tondl & Peter Huber, 2011.
"Migration and Regional Convergence in the European Union,"
ERSA conference papers
ersa11p1761, European Regional Science Association.
- Peter Huber & Gabriele Tondl, 2012. "Migration and Regional Convergence in the European Union," WIFO Working Papers 419, WIFO.
- Herbert Brücker & Elke J. Jahn, 2009. "Migration and Wage-Setting: Reassessing the Labor Market Effects of Migration," Kiel Working Papers 1502, Kiel Institute for the World Economy.
- Steinhardt, Max Friedrich, 2006. "Arbeitsmarkt und Migration: Eine empirische Analyse der Lohn- und Beschäftigungseffekte der Zuwanderung für Deutschland," HWWI Research Papers 3-4, Hamburg Institute of International Economics (HWWI).
- Albrecht Glitz, 2006. "The Labour Market Impact of Immigration: Quasi-Experimental Evidence," CReAM Discussion Paper Series 0612, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
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