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Effects of Job Entry Restrictions on Economic Integration - Evidence for Recent Ethnic German Immigrants

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  • Jan Brenner

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Abstract

We analyze the impact of job entry restrictions on the economic integration of recent ethnic German immigrants, using twelve waves of the German Socio-Economic Panel.The German labor market closely ties job accessibility to vocational education which likely hampers the transferability of foreign human capital. To assess this effect, we compare the job mismatch probabilities of ethnic German immigrants and German natives and the employment probability in jobs that vary by the qualifications they require. Our results suggest that ethnic Germans are disadvantaged upon arrival, yet almost completely assimilate to comparable natives considering these two job quality measures. Furthermore, controlling for these factors explains a considerable share of the earnings gap between ethnic and native Germans.

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Bibliographic Info

Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0025.

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Length: 31 pages
Date of creation: Aug 2007
Date of revision:
Handle: RePEc:rwi:repape:0025

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Keywords: Human capital transferability and investment; job mismatch; skill requirements; immigrants; wage assimilation;

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References

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  1. Maarten Wolbers, 2002. "Job Mismatches and their Labour Market Effects among School-leavers in Europe," MZES Working Papers 47, MZES.
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  7. Groot, Wim & Maassen van den Brink, Henriette, 2000. "Overeducation in the labor market: a meta-analysis," Economics of Education Review, Elsevier, vol. 19(2), pages 149-158, April.
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  9. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October.
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  13. 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.
  14. Michaela Kreyenfeld & Dirk Konietzka, 2001. "The transferability of foreign educational credentials - the case of ethnic German migrants in the German labor market," MPIDR Working Papers WP-2001-002, Max Planck Institute for Demographic Research, Rostock, Germany.
  15. Schmidt Christoph Μ., 1996. "German Economic Growth After the Demise of Socialism: The Potential Contribution of East-West Migration," Jahrbuch für Wirtschaftsgeschichte / Economic History Yearbook, De Gruyter, vol. 37(2), pages 109-126, December.
  16. Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-80, June.
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Cited by:
  1. Stefanie Schurer, 2008. "Labour Market Outcomes of Second Generation Immigrants: How Heterogeneous Are They Really?," Melbourne Institute Working Paper Series wp2008n14, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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