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Convergence or Divergence?: Immigrant Wage Assimilation Patterns in Germany

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  • Michael Zibrowius

Abstract

Using a rich panel data set, I estimate wage assimilation patterns for immigrants in Germany as an example of a key European destination country. This study contributes to the literature by performing separate estimations by skill groups. Comparisons with similar natives reveal that immigrants' experience earnings profiles are flatter on average, although clear differences exist between skill groups. The effect of time spent in the host country is significantly positive and thus partly offsetting the diverging trend in the experience earnings profiles. Still, wage differences between natives and immigrants remain. They are particularly noticeable for highly skilled immigrants, the group needed most in Germany's skill intensive labor market.

Suggested Citation

  • Michael Zibrowius, 2012. "Convergence or Divergence?: Immigrant Wage Assimilation Patterns in Germany," SOEPpapers on Multidisciplinary Panel Data Research 479, DIW Berlin, The German Socio-Economic Panel (SOEP).
  • Handle: RePEc:diw:diwsop:diw_sp479
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    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.408060.de/diw_sp0479.pdf
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    Cited by:

    1. Brunow, Stephan & Jost, Oskar, 2020. "On the foreign to native wage differential in Germany: Does the home country matter?," IAB Discussion Paper 202026, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Brunow, Stephan & Jost, Oskar, 2019. "Wages of migrant and native employees in Germany: new light on an old issue," IAB Discussion Paper 201910, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Uuriintuya Batsaikhan & Zsolt Darvas & Inês Goncalves Raposo, . "People on the move- migration and mobility in the European Union," Blueprints, Bruegel, number 23874, December.

    More about this item

    Keywords

    international migration; wage differentials; assimilation; longitudinal data;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • 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

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