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Naturalization and labor market performance of immigrants in Germany

Author

Listed:
  • Regina T. Riphahn
  • Salwan Saif

Abstract

Naturalization may be a relevant policy instrument affecting immigrant integration in host‐country labor markets. We study the effect of naturalization on labor market outcomes of immigrants in Germany. We apply recent survey data and exploit a reform of naturalization rules in an instrumental variable estimation. In our sample of recent immigrants, linear regression yields positive correlations between naturalization and beneficial labor market outcomes. Once we account for the endogeneity of naturalization, most coefficients decline in magnitude and lose statistical significance: male immigrants’ labor market outcomes do not benefit significantly from naturalization. Naturalization reduces the risks of unemployment and welfare dependence for female immigrants. For males and females, the propensity to hold a permanent contract increases as a consequence of naturalization. The results are robust to modifications of samples and the instrument.

Suggested Citation

  • Regina T. Riphahn & Salwan Saif, 2019. "Naturalization and labor market performance of immigrants in Germany," LABOUR, CEIS, vol. 33(1), pages 48-76, March.
    • Handle: RePEc:bla:labour:v:33:y:2019:i:1:p:48-76
    DOI: 10.1111/labr.12136
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    Cited by:

    1. Kerstin Bruckmeier & Regina T. Riphahn & Jürgen Wiemers, 2021. "Misreporting of program take-up in survey data and its consequences for measuring non-take-up: new evidence from linked administrative and survey data," Empirical Economics, Springer, vol. 61(3), pages 1567-1616, September.
    2. Andrés García-Suaza & Angie Mondragón-Mayo & Alexander Sarango-Iturralde, 2024. "Occupational downgrading of Venezuelan migrants in Colombia: Do work permits Improve occupational mobility?," Documentos de Trabajo 21028, Universidad del Rosario.
    3. Jacobsen, Jannes & Krieger, Magdalena & Schikora, Felicitas & Schupp, Jürgen, 2021. "Growing Potentials for Migration Research using the German Socio-Economic Panel Study," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 241(4), pages 527-549.
    4. Giesecke, Matthias & Schuss, Eric, 2019. "Heterogeneity in marginal returns to language training of immigrants," Ruhr Economic Papers 812, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Adriana Rocío Cardozo Silva & Christopher Prömel, 2025. "Feeling Equal before the Law? The Impact of Access to Citizenship and Legal Status on Perceived Discrimination," SOEPpapers on Multidisciplinary Panel Data Research 1223, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Bruckmeier, Kerstin & Riphahn, Regina T. & Wiemers, Jürgen, 2019. "Benefit underreporting in survey data and its consequences for measuring non-take-up: new evidence from linked administrative and survey data," IAB-Discussion Paper 201906, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Nils Braakmann, 2021. "Immigration Status Uncertainty and Mental Health—Evidence from Brexit," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 60(4), pages 521-548, October.
    8. Giesecke, Matthias & Schuss, Eric, 2019. "Heterogeneity in marginal returns to language training of immigrants," Ruhr Economic Papers 812, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. García-Suaza, Andres & Mondragón-Mayo, Angie & Sarango-Iturralde, Alexander, 2025. "From Exodus to Employment: Labor Market Transitions and the Role of Work Permits in Colombia," GLO Discussion Paper Series 1606, Global Labor Organization (GLO).

    More about this item

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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