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The immigrant-native pay gap in Germany

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  • Humpert, Stephan

Abstract

This note analyzes income differences between foreigners and natives in Germany. Using social survey data (ALLBUS) for 2012, I use Mincer style quantile regressions and Oaxaca-Blinder decompositions to estimate the size of the income differential. People not born in Germany, have an income lose for about 6,5 to 10 per cent. People with a foreign citizenship have even higher income losses. They face penalties between 8 to 14 percent. Decomposition shows a 9,2 percent difference for immigrants, while most of the gap is unexplained. Individuals without German citizenship have a 15,8 percent difference. Here more of the half remain unexplained.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 50413.

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Date of creation: Oct 2013
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Handle: RePEc:pra:mprapa:50413

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Keywords: immigration; income; pay gap; Germany; ALLBUS;

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References

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  1. Stephan Humpert, 2012. "Somewhere over the Rainbow: Sexual Orientation Discrimination in Germany," Working Paper Series in Economics 245, University of Lüneburg, Institute of Economics.
  2. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  3. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
  4. Florian Lehmer & Johannes Ludsteck, 2011. "The Immigrant Wage Gap in Germany: Are East Europeans Worse Off?," ERSA conference papers ersa10p769, European Regional Science Association.
  5. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  6. Cristian Bartolucci, 2010. "Understanding the Native-Immigrant Wage Gap Using Matched Employer-Employee Data. Evidence from Germany," Carlo Alberto Notebooks 150, Collegio Carlo Alberto.
  7. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
  8. Alisher Aldashev & Johannes Gernandt & Stephan L. Thomsen, 2012. "The Immigrant-Native Wage Gap in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 232(5), pages 490-517, September.
  9. Pavlína Jandová, 2012. "Migration and economic conditions in the EU: a case study of immigrants in Germany," International Economics Letters, Transnational Press London, UK, vol. 1(1), pages 41-48, October.
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Cited by:
  1. Humpert, Stephan, 2014. "Trends in occupational segregation: What happened with women and foreigners in Germany?," MPRA Paper 56277, University Library of Munich, Germany.

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