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Foreign Nationality and Age - A Double Drawback for Reemployment in Germany?

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Author Info
Jana Bruder () (University of Rostock)
Katharina Frosch () (Rostock Centre for the Study of Demographic Change, Germany)

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Abstract

We analyze reemployment prospects for Germans and non-Germans over the life course. Older foreigners may experience a double drawback due to health issues, discrimination or differences in occupational structure. This effect might be alleviated by accumulation of country-specific skills over time and selectivity effects. We apply a piecewise-constant hazard rate model on more than 270.000 unemployment episodes drawn from the social insurance register for male employees aged 25 to 65 years between 1975 to 2001. Foreign nationality lowers reemployment prospects by 7 percentage points. On average, the effect of aging on reemployment is stronger for non-Germans. The effect of nationality differs strongly between nationalities and ranges from minus 17 percentage points for Greeks up to plus 5 percentage points for people from Ex-Yugoslavia. Aging is particularly a problem for foreigners from Greece and Turkey: Until age 60, their prospects for reemployment are, on average, about 27 percent below that of natives.

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File URL: http://www.wiwi.uni-rostock.de/fileadmin/Institute/VWL/VWL-Institut/RePEc/pdf/wp063thuenen.pdf
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Publisher Info
Paper provided by University of Rostock, Institute of Economics, Germany in its series Thuenen-Series of Applied Economic Theory with number 63.

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Length: 15 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:ros:wpaper:63

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Related research
Keywords: labor migration; aging workforce; reemployment; proportional hazard rate models; demographic change;

Other versions of this item:

Find related papers by JEL classification:
J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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References listed on IDEAS
Please 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.:
  1. Petrongolo, Barbara, 2001. "Reemployment Probabilities and Returns to Matching," Journal of Labor Economics, University of Chicago Press, vol. 19(3), pages 716-41, July. [Downloadable!] (restricted)
  2. Günter Lang, 2005. "The difference between wages and wage potentials: Earnings disadvantages of immigrants in Germany," Journal of Economic Inequality, Springer, vol. 3(1), pages 21-42, April. [Downloadable!] (restricted)
  3. Katharina Frosch, 2006. "Reemployment Rates over the Life Course: Is there still Hope after Late Career Job Loss?," Thuenen-Series of Applied Economic Theory 64, University of Rostock, Institute of Economics, Germany. [Downloadable!]
  4. Fallick, Bruce Chelimsky, 1991. "Unemployment Insurance and the Rate of Re-employment of Displaced Workers," The Review of Economics and Statistics, MIT Press, vol. 73(2), pages 228-35, May. [Downloadable!] (restricted)
  5. Thomas Bauer & Mathias Sinning, 2005. "The Savings Behavior of Temporary and Permanent Migrants in Germany," RWI Discussion Papers 0029, Rheinisch-Westfälisches Institut für Wirtschaftsforschung. [Downloadable!]
    Other versions:
  6. Wilke, Ralf A., 2004. "New Estimates of the Duration and Risk of Unemployment for West-Germany," ZEW Discussion Papers 04-26, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  7. Vegard Skirbekk, 2003. "Age and individual productivity: a literature survey," MPIDR Working Papers WP-2003-028, Max Planck Institute for Demographic Research, Rostock, Germany. [Downloadable!]
  8. Axel Börsch-Supan & Ismail Düzgün & Matthias Weiss, 2005. "Altern und Produktivität: Zum Stand der Forschung," MEA discussion paper series 05073, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
    Other versions:
  9. Stock, J.H. & Wise, D.A., 1988. "Pensions, The Option Value Of Work, And Retirement," Papers e-88-28, Stanford - Hoover Institution.
    Other versions:
  10. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October. [Downloadable!] (restricted)
  11. Constant, Amelie & Massey, Douglas S., 2003. "Labor Market Segmentation and the Earnings of German Guestworkers," IZA Discussion Papers 774, Institute for the Study of Labor (IZA). [Downloadable!]
  12. Bruce K. Fallick, 1989. "Unemployment Insurance and the Rate of Re-Employment of Displaced Workers," UCLA Economics Working Papers 550, UCLA Department of Economics. [Downloadable!]
  13. Kletzer, Lori G, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-36, Winter. [Downloadable!] (restricted)
  14. 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). [Downloadable!]
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  15. Victoria Buesch & Svenn-Age Dahl & Dennis A.V. Dittrich, 2004. "Age Discrimination in Hiring Decisions - A Comparison of Germany and Norway," Papers on Strategic Interaction 2004-14, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
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Cited by:
(explanations, Please 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.)

  1. Katharina Frosch, 2006. "Reemployment Rates over the Life Course: Is there still Hope after Late Career Job Loss?," Thuenen-Series of Applied Economic Theory 64, University of Rostock, Institute of Economics, Germany. [Downloadable!]
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