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Does citizenship matter? The economic impact of naturalizations in Germany

  • Steinhardt, Max Friedrich

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.

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Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 19 (2012)
Issue (Month): 6 ()
Pages: 813-823

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Handle: RePEc:eee:labeco:v:19:y:2012:i:6:p:813-823
DOI: 10.1016/j.labeco.2012.09.001
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  1. Kaas, Leo & Manger, Christian, 2010. "Ethnic Discrimination in Germany's Labour Market: A Field Experiment," IZA Discussion Papers 4741, Institute for the Study of Labor (IZA).
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  16. 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.
  17. Steinhardt, Max Friedrich, 2007. "Aktuelle Trends der Einbürgerungen in Deutschland," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1949 - 2007), ZBW – German National Library of Economics / Leibniz Information Centre for Economics, vol. 87(8), pages 544-549.
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  20. Nijman, T.E. & Verbeek, M.J.C.M., 1992. "Non-response in panel data : The impact on estimates of a life cycle consumption function," Other publications TiSEM 3c661e33-2cd1-47f1-a7d9-3, Tilburg University, School of Economics and Management.
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