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Transferability of Human Capital and Immigrant Assimilation: An Analysis for Germany

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  • Kramer, Anica
  • Basilio, Leilanie
  • Bauer, Thomas K.

Abstract

This 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 signi cantly lower returns than human capital obtained in Germany. We further nd 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 di erential between natives and immigrants. --

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Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order with number 79964.

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Date of creation: 2013
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Handle: RePEc:zbw:vfsc13:79964

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  1. Sanromá, Esteban & Ramos, Raul & Simón, Hipólito, 2009. "Immigrant Wages in the Spanish Labour Market: Does the Origin of Human Capital Matter?," IZA Discussion Papers 4157, Institute for the Study of Labor (IZA).
  2. 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).
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  9. Cohen Goldner, Sarit & Eckstein, Zvi, 2002. "Labor Mobility of Immigrants: Training, Experience, Language and Opportunities," IZA Discussion Papers 519, Institute for the Study of Labor (IZA).
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  14. John P. Haisken-DeNew & Markus H. Hahn, 2010. "PanelWhiz - Efficient Data Extraction of Complex Panel Data Sets: An Example Using the German SOEP," Data Documentation 53, DIW Berlin, German Institute for Economic Research.
  15. Korpi, Tomas & TÃ¥hlin, Michael, 2009. "Educational mismatch, wages, and wage growth: Overeducation in Sweden, 1974-2000," Labour Economics, Elsevier, Elsevier, vol. 16(2), pages 183-193, April.
  16. Sherrie A. Kossoudji, 1989. "Immigrant Worker Assimilation: Is It a Labor Market Phenomenon?," Journal of Human Resources, University of Wisconsin Press, vol. 24(3), pages 494-527.
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Cited by:
  1. Christian Dustmann & Albrecht Glitz, 2011. "Migration and Education," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2011011, Norface Research Programme on Migration, Department of Economics, University College London.
  2. Gathmann, Christina & Keller, Nicolas, 2014. "Returns to Citizenship? Evidence from Germany's Recent Immigration Reforms," IZA Discussion Papers 8064, Institute for the Study of Labor (IZA).
  3. Jahn, Elke & Hirsch, Boris & Toomet, Ott & Hochfellner, Daniela, 2013. "Does better pre-migration performance accelerate immigrants' wage assimilation?," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79833, Verein für Socialpolitik / German Economic Association.
  4. Sónia Cabral & Cláudia Duarte, 2013. "Mind the gap! The relative wages of immigrants in the Portuguese labour market," Working Papers, Banco de Portugal, Economics and Research Department w201305, Banco de Portugal, Economics and Research Department.
  5. Sónia Cabral & Cláudia Duarte, 2012. "The wage gap of immigrants in the Portuguese labour market," Economic Bulletin and Financial Stability Report Articles, Banco de Portugal, Economics and Research Department, Banco de Portugal, Economics and Research Department.
  6. Ognjen Obućina, 2013. "The Patterns of Satisfaction Among Immigrants in Germany," Social Indicators Research, Springer, Springer, vol. 113(3), pages 1105-1127, September.
  7. Mari Kangasniemi & Merja Kauhanen, 2013. "Characteristics and labour market performance of the new member state (NMS12) immigrants in Finland, Germany, the Netherlands and the United Kingdom," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2013002, Norface Research Programme on Migration, Department of Economics, University College London.
  8. Wunder, Christoph & Riphahn, Regina T., 2011. "The dynamics of welfare entry and exit among natives and immigrants," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 49162, Verein für Socialpolitik / German Economic Association.

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