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Immigration and Income Inequality:A Comparative Study of Denmark and Germany, 1984-2003

Author

Listed:
  • Mette Deding

    (The Danish National Centre for Social Research)

  • M. Azhar Hussain

    (University of Copenhagen)

  • Vibeke Jakobsen

    (The Danish National Centre for Social Research)

  • Stefanie Brodmann

    (Princeton University)

Abstract

During the last two decades most Western countries have experienced increased net immigration as well as increased income inequality. This article analyzes the effects on income inequality of an increased number of immigrants in Denmark and Germany for the 20- year period 1984-2003 and how the impact of the increased number of immigrants differs between the two countries. We find higher inequality for immigrants than natives in Denmark but vice versa for Germany. Over the period 1984-2003, this particular inequality gap has narrowed in both countries. At the same time, the contribution of immigrants to overall inequality has increased, primarily caused by increased between-group inequality. The share of immigrants in the population is more important for the change in overall inequality in Denmark than in Germany, while the opposite is the case for inequality among immigrants.

Suggested Citation

  • Mette Deding & M. Azhar Hussain & Vibeke Jakobsen & Stefanie Brodmann, 2010. "Immigration and Income Inequality:A Comparative Study of Denmark and Germany, 1984-2003," Journal of Income Distribution, Ad libros publications inc., vol. 19(1), pages 48-74, March.
    • Handle: RePEc:jid:journl:y:2010:v:19:i:1:p:48-74
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    Citations

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    Cited by:

    1. ., 2012. "Migration impact assessment: a state of the art," Chapters, in: Peter Nijkamp & Jacques Poot & Mediha Sahin (ed.), Migration Impact Assessment, chapter 1, pages 3-62, Edward Elgar Publishing.
    2. Gil, Pedro Mazeda & Gabriel, Susana & Afonso, Oscar, 2020. "Is the skills mismatch important under skill-biased technological change and imperfect substitutability between immigrants and natives?," Economic Modelling, Elsevier, vol. 84(C), pages 38-54.
    3. Jakobsen, Vibeke & Pedersen, Peder J., 2016. "Poverty Risk among Older Immigrants in a Scandinavian Welfare State," IZA Discussion Papers 9944, Institute of Labor Economics (IZA).
    4. Nijkamp, P. & Poot, H.J., 2012. "Migration impact assessment: A state of the art," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.

    More about this item

    Keywords

    income distribution; immigration; comparative analysis;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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