IDEAS home Printed from https://ideas.repec.org/a/eee/labeco/v19y2012i6p813-823.html
   My bibliography  Save this article

Does citizenship matter? The economic impact of naturalizations in Germany

Author

Listed:
  • Steinhardt, Max Friedrich

Abstract

This paper analyses whether citizenship acquisition affects the labour market performance of immigrants in Germany. The study uses actual micro data from the employment sample of the Institute for Employment Research, which covers more than 80% of the entire labour force in Germany. The econometric analysis has been carried out using panel data techniques, which allow to disentangle the effects of self-selection and legal impact of citizenship acquisition. Estimates from a pooled OLS specification suggest the existence of a wage premium for naturalized immigrants of both genders. Fixed effects estimates for males show an increased wage growth in the years following naturalization, consistent with the argument that naturalization increases the labour market opportunities of immigrants. Results for female employees indicate that the wage premium of naturalized women is solely the result of a positive self-selection process.

Suggested Citation

  • Steinhardt, Max Friedrich, 2012. "Does citizenship matter? The economic impact of naturalizations in Germany," Labour Economics, Elsevier, vol. 19(6), pages 813-823.
    • Handle: RePEc:eee:labeco:v:19:y:2012:i:6:p:813-823
    DOI: 10.1016/j.labeco.2012.09.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0927537112001005
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.labeco.2012.09.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. DeVoretz, Don J., 2006. "The Economics of Citizenship: A Common Intellectual Ground for Social Scientists?," IZA Discussion Papers 2392, Institute of Labor Economics (IZA).
    2. Dustmann, Christian & Glitz, Albrecht & Vogel, Thorsten, 2010. "Employment, wages, and the economic cycle: Differences between immigrants and natives," European Economic Review, Elsevier, vol. 54(1), pages 1-17, January.
    3. Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 76-108, Part II, .
    4. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    5. Francesca Mazzolari, 2009. "Dual citizenship rights: do they make more and richer citizens?," Demography, Springer;Population Association of America (PAA), vol. 46(1), pages 169-191, February.
    6. DeVoretz, Don J. & Pivnenko, Sergiy, 2005. "Self-Selection, Immigrant Public Finance Performance and Canadian Citizenship," IZA Discussion Papers 1463, Institute of Labor Economics (IZA).
    7. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    8. Kaas Leo & Manger Christian, 2012. "Ethnic Discrimination in Germany’s Labour Market: A Field Experiment," German Economic Review, De Gruyter, vol. 13(1), pages 1-20, February.
    9. DeVoretz, Don J. & Pivnenko, Sergiy, 2004. "The Economic Causes and Consequences of Canadian Citizenship," IZA Discussion Papers 1395, Institute of Labor Economics (IZA).
    10. Bevelander, Pieter & Veenman, Justus, 2006. "Naturalisation and Socioeconomic Integration: The Case of the Netherlands," IZA Discussion Papers 2153, Institute of Labor Economics (IZA).
    11. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    12. Nijman, Theo & Verbeek, Marno, 1992. "Nonresponse in Panel Data: The Impact on Estimates of a Life Cycle Consumption Function," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 7(3), pages 243-257, July-Sept.
    13. repec:iab:iabfme:200502(en is not listed on IDEAS
    14. 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.
    15. Steinhardt, Max Friedrich, 2007. "Aktuelle Trends der Einbürgerungen in Deutschland," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1949 - 2007), ZBW - Leibniz Information Centre for Economics, vol. 87(8), pages 544-549.
    16. 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.
    17. Hailbronner, Kay, 2007. "Diversity in the labour market: The legal framework and support services for migrant workers in Germany," HWWI Policy Papers 3-4, Hamburg Institute of International Economics (HWWI).
    18. Pierre Cahuc & André Zylberberg, 2004. "Labor Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 026203316x, April.
    19. Locke, John, 1690. "Two Treatises of Government," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number locke1690a.
    20. Mazzolari, Francesca, 2007. "Dual Citizenship Rights: Do They Make More and Better Citizens?," IZA Discussion Papers 3008, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Edo Anthony, 2015. "The Impact of Immigration on Native Wages and Employment," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(3), pages 1151-1196, July.
    2. David Neumark, 2018. "Experimental Research on Labor Market Discrimination," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 799-866, September.
    3. Engdahl, Mattias, 2014. "Naturalizations and the economic and social integration of immigrants," Working Paper Series, Center for Labor Studies 2014:6, Uppsala University, Department of Economics.
    4. Jens Ruhose, 2015. "Microeconometric Analyses on Economic Consequences of Selective Migration," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61.
    5. Héctor Alberto Botello-Peñaloza, 2021. "Wage Inequality of Venezuelan Migrants in Ecuador," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(1), pages 115-132, March.
    6. Ebner, Christian & Helbling, Marc, 2016. "Social distance and wage inequalities for immigrants in Switzerland," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 30(3), pages 436-454.
    7. Das, Tirthatanmoy & Polachek, Solomon, 2017. "Micro Foundations of Earnings Differences," IZA Discussion Papers 10922, Institute of Labor Economics (IZA).
    8. Knize Estrada, Veronika J., 2018. "Migrant women labor-force participation in Germany : Human capital, segmented labor market, and gender perspectives," IAB-Discussion Paper 201812, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Fraga, Eduardo & Gonzaga, Gustavo & Soares, Rodrigo R., 2017. "Selection on Ability and the Early Career Growth in the Gender Wage Gap," IZA Discussion Papers 10791, Institute of Labor Economics (IZA).
    10. Boll, Christina & Lagemann, Andreas, 2018. "Das Erwerbsverhalten von Eltern mit Migrationshintergrund: SOEP-basierte Befunde und deren Implikationen für Hamburg," HWWI Policy Papers 112, Hamburg Institute of International Economics (HWWI).
    11. Engdahl, Mattias, 2014. "Naturalizations and the economic and social integration of immigrants," Working Paper Series 2014:11, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    12. Paul W. Miller & Barry R. Chiswick, 2002. "Immigrant earnings: Language skills, linguistic concentrations and the business cycle," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(1), pages 31-57.
    13. Sami Napari, 2008. "The Early‐career Gender Wage Gap among University Graduates in the Finnish Private Sector," LABOUR, CEIS, vol. 22(4), pages 697-733, December.
    14. Appleton, Simon & Song, Lina & Xia, Qingjie, 2005. "Has China crossed the river? The evolution of wage structure in urban China during reform and retrenchment," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 644-663, December.
    15. Oskar Skans & Linus Liljeberg, 2014. "The wage effects of subsidized career breaks," Empirical Economics, Springer, vol. 47(2), pages 593-617, September.
    16. Aysegul KAYAOGLU & Ayhan KAYA, 2011. "Is National Citizenship Withering Away? : Social Affiliations and Labor Market Integration of Turkish Origin Immigrants in Germany and France," LIDAM Discussion Papers IRES 2011033, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    17. Alan Manning & Joanna Swaffield, 2008. "The gender gap in early-career wage growth," Economic Journal, Royal Economic Society, vol. 118(530), pages 983-1024, July.
    18. Solomon W. Polachek & Jun (Jeff) Xiang, 2006. "The Effects of Incomplete Employee Wage Information: A Cross-Country Analysis," Research in Labor Economics, in: The Economics of Immigration and Social Diversity, pages 35-75, Emerald Group Publishing Limited.
    19. Molina, José Alberto & Montuenga, Víctor M., 2008. "The Motherhood Wage Penalty in a Mediterranean Country: The Case of Spain," IZA Discussion Papers 3574, Institute of Labor Economics (IZA).
    20. Steinhardt Max Friedrich, 2011. "The Wage Impact of Immigration in Germany - New Evidence for Skill Groups and Occupations," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-35, June.

    More about this item

    Keywords

    Citizenship; Naturalization; Self-selection; Economic impact; Integration;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:labeco:v:19:y:2012:i:6:p:813-823. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/labeco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.