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Labour Market Outcomes of Second Generation Immigrants: How Heterogeneous Are They Really?

  • Stefanie Schurer

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

This study comprehensively portrays the labour market outcomes of second generation immigrants in Germany. Special attention is attributed to observable heterogeneity in terms of country of origin and unobservable heterogeneity in terms of parental human capital, neighbourhood effects, and mixed marriage background. Pooled, static and dynamic panel data models, and a decomposition analysis are used to estimate and explain the average differences in hourly wages and unemployment probabilities separately for men and women. The results suggest that the second generation cannot be considered as one homogeneous group: some groups perform better, equally or worse than comparable German natives. Also, relative outcomes in wages depend mainly on observable characteristics, whereas relative unemployment risks are mainly driven by unobservable factors.

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Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2008n14.

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Length: 46 pages
Date of creation: Aug 2008
Date of revision:
Handle: RePEc:iae:iaewps:wp2008n14
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Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia

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