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The wage impact of immigration in Germany - new evidence for skill groups and occupations

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  • Max Friedrich Steinhardt

    (Centro Studi Luca d'Agliano (LdA) and Hamburg Institute of International Economics (HWWI))

Abstract

The paper contributes to the ongoing debate about the adequate technique to identify the impact of immigration. Initially the regression analysis on the basis of education-experience cells reveals that the impact of immigration on native wages in Germany is negative, but small. The subsequent analysis on the basis of occupations using the same data yields a considerably higher adjustment coefficient and indicates strong wage effects within primary service occupations with a magnitude comparable to results for the US. The analysis therefore demonstrates that the use of formal qualifications as an exclusive classification criterion may lead to an underestimation of the impact of immigration.

Suggested Citation

  • Max Friedrich Steinhardt, 2009. "The wage impact of immigration in Germany - new evidence for skill groups and occupations," Development Working Papers 273, Centro Studi Luca d'Agliano, University of Milano.
  • Handle: RePEc:csl:devewp:273
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    More about this item

    Keywords

    Labour market impact of migration; skill group approach; occupations; fixed effects model;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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