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Unemployment and Wages of Ethnic Germans

Author

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  • Bauer, Thomas
  • Zimmermann, Klaus F

Abstract

This paper uses the immigration sample of the German Socioeconomic Panel to analyse the earnings and unemployment assimilation of ethnic Germans who entered West Germany within the last ten years. The empirical analysis suggests that there is no earnings differential between immigrants from Eastern Europe and comparable East Germans at the time of immigration. With longer time of residence the earnings of former East Europeans rise faster than those of East Germans, however. Migrants from Poland and the former USSR have higher unemployment risks than those from East Germany or Romania. Ethnic networks are shown to be very useful for a successful integration into the labour market.

Suggested Citation

  • Bauer, Thomas & Zimmermann, Klaus F, 1996. "Unemployment and Wages of Ethnic Germans," CEPR Discussion Papers 1512, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:1512
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    References listed on IDEAS

    as
    1. Schmidt, Christoph M & Zimmermann, Klaus F, 1991. "Work Characteristics, Firm Size and Wages," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 705-710, November.
    2. George J. Borjas, 1995. "The Economic Benefits from Immigration," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 3-22, Spring.
    3. Erika Schulz & Kerstin Seiring, 1994. "Integration deutscher Zuwanderer in den westdeutschen Arbeitsmarkt," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 61(35), pages 609-617.
    4. 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.
    5. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    6. Erika Schulz & Ulrich Rendtel & Jürgen Schupp & Gert Wagner, 1993. "Das Zuwanderer-Problem in Wiederholungsbefragungen am Beispiel des Sozio-oekonomischen Panels (SOEP)," Discussion Papers of DIW Berlin 71, DIW Berlin, German Institute for Economic Research.
    7. Johannes Schwarze & Felix Büchel, 1994. "Wanderungen von Ost- nach Westdeutschland," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 61(9), pages 128-132.
    8. Schmidt, Christoph M, 1994. "The Economic Performance of Germany's East European Immigrants," CEPR Discussion Papers 963, C.E.P.R. Discussion Papers.
    9. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Earnings Assimilation; Immigration of Ethnic Germans; Unemployment;

    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
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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