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The Integration of Migrants in the German Labor Market: Evidence over 50 Years

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  • Berbée, Paul
  • Stuhler, Jan

Abstract

Germany has become the second-most important destination for migrants worldwide. Using all waves from the microcensus, we study their labor 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 pp. 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 labor 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

  • Berbée, Paul & Stuhler, Jan, 2023. "The Integration of Migrants in the German Labor Market: Evidence over 50 Years," CEPR Discussion Papers 18452, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:18452
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    2. Leah Boustan & Mathias Fjællegaard Jensen & Ran Abramitzky & Elisa Jácome & Alan Manning & Santiago Pérez & Analysia Watley & Adrian Adermon & Jaime Arellano-Bover & Olof Åslund & Marie Connolly & Nat, 2025. "Intergenerational Mobility of Immigrants in 15 Destination Countries," NBER Working Papers 33558, National Bureau of Economic Research, Inc.
    3. Maximilian Blömer & Elena Herold & Max Lay & Andreas Peichl & Ann‐Christin Rathje & Paul Schüle & Anne Steuernagel, 2024. "Labour market trends and income inequality in Germany, 1983–2020," Fiscal Studies, John Wiley & Sons, vol. 45(3), pages 325-342, September.
    4. Bonin Holger & Rinne Ulf, 2025. "Aktive Arbeitsmarktpolitik hat Integration der Geflüchteten nachhaltig verbessert," Wirtschaftsdienst, Sciendo, vol. 105(9), pages 622-627.

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    Keywords

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    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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