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The integration of migrants in the German labour market: evidence over 50 years

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  • Paul Berbée
  • Jan Stuhler

Abstract

SUMMARYGermany has become the second-most important destination for migrants worldwide. Using all waves from the microcensus, we study their labour market integration over the last 50 years and highlight differences to the US case. Although the employment gaps between immigrant and native men decline after arrival, they remain large for most cohorts; the average gap after one decade is 10 percentage points. Conversely, income gaps tend to widen post-arrival. Compositional differences explain how those gaps vary across groups, and why they worsened over time; after accounting for composition, integration outcomes show no systematic trend. Still, economic conditions do matter, and employment collapsed in some cohorts after structural shocks hit the German labour market in the early 1990s. Lastly, we examine the integration of recent arrivals during the European refugee ‘crisis’ and the Russo-Ukrainian war.

Suggested Citation

  • Paul Berbée & Jan Stuhler, 2025. "The integration of migrants in the German labour market: evidence over 50 years," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 40(122), pages 481-549.
    • Handle: RePEc:oup:ecpoli:v:40:y:2025:i:122:p:481-549.
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    File URL: http://hdl.handle.net/10.1093/epolic/eiae040
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    More about this item

    Keywords

    J11; J61; J68;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • 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

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