Transferability of Human Capital and Immigrant Assimilation: An Analysis for Germany
AbstractThis paper investigates the transferability of human capital across countries and the contribution of imperfect human capital portability to the explanation of the immigrant-native wage gap. Using data for West Germany, our results reveal that, overall, education and labor market experience accumulated in the home countries of the immigrants receive significantly lower returns than human capital obtained in Germany. We further find evidence for heterogeneity in the returns to human capital of immigrants across origin countries. Finally, imperfect human capital transferability appears to be a major factor in explaining the wage differential between natives and immigrants.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4716.
Length: 33 pages
Date of creation: Jan 2010
Date of revision:
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Other versions of this item:
- Leilanie Basilio & Thomas K. Bauer, 2010. "Transferability of Human Capital and Immigrant Assimilation – An Analysis for Germany," Ruhr Economic Papers 0164, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-02-13 (All new papers)
- NEP-EUR-2010-02-13 (Microeconomic European Issues)
- NEP-HRM-2010-02-13 (Human Capital & Human Resource Management)
- NEP-LAB-2010-02-13 (Labour Economics)
- NEP-MIG-2010-02-13 (Economics of Human Migration)
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