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Naturalization and labor market performance of immigrants in Germany

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  • 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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    References listed on IDEAS

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    1. Ciro Avitabile & Irma Clots-Figueras & Paolo Masella, 2013. "The Effect of Birthright Citizenship on Parental Integration Outcomes," Journal of Law and Economics, University of Chicago Press, vol. 56(3), pages 777-810.
    2. Christoph Sajons, 2016. "Does granting citizenship to immigrant children affect family outmigration?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(2), pages 395-420, April.
    3. Bernt Bratsberg & James F. Ragan & Zafar M. Nasir, 2002. "The Effect of Naturalization on Wage Growth: A Panel Study of Young Male Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 568-597, July.
    4. Felfe, Christina & Saurer, Judith, 2014. "Granting Birthright Citizenship: A Door Opener to Immigrant Children’s Educational Participation and Success," Economics Working Paper Series 1431, University of St. Gallen, School of Economics and Political Science.
    5. Friederike von Haaren-Giebel & Malte Sandner, 2016. "Naturalisation and on-the-job training: evidence from first-generation immigrants in Germany," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-28, December.
    6. Saurer, Judith & Felfe, Christina, 2014. "Granting Birthright Citizenship - A Door Opener for Immigrant Children's Educational Participation and Success?," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100548, Verein für Socialpolitik / German Economic Association.
    7. Sajons, Christoph & Clots-Figueras, Irma, 2014. "Birthright citizenship and education - Do immigrant children need a passport to thrive?," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100470, Verein für Socialpolitik / German Economic Association.
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    Cited by:

    1. 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.
    2. repec:iab:iabdpa:201906 is not listed on IDEAS

    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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