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Does Immigration Affect Native’s Labor Market Outcomes in Germany?

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  • Dilan Tas

    ()

  • Merima Kastrat

    ()

Abstract

Germany is one of the several countries in Europe that have opened its borders to immigrants for many years. The admission of immigrants into Germany has contributed to the country being the second largest immigration destination in the world, and this has resulted in both negative and positive outcomes for the natives. In this essay, the effect of immigration on natives’ hourly wages and employment was examined, by using microdata for Germany. Native workers’ educational level attainments and 16 different regions in Germany were taken into account to obtain regional variation. Cross-sectional data was used for the years 2005, 2009 and 2015 in order to measure the effect of the share of immigrants on natives’hourly wages and employment. The findings showed that the share of immigrants, had a positive effect on natives’ wages and employment in 2005 and 2009. In 2015, however, a negative relationship was found, with the share of immigrants impacting negatively on natives’ wages but not on employment. Thus, the study highlights the importance of immigrants on natives’ hourly wages and employment.

Suggested Citation

  • Dilan Tas & Merima Kastrat, 2019. "Does Immigration Affect Native’s Labor Market Outcomes in Germany?," LIS Working papers 770, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:770
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    1. Brücker, Herbert & Bertoli, Simone & Fernández-Huertas Moraga, Jesús, 2013. "The European Crisis and Migration to Germany: Expectations and the Diversion of Migration Flows," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79693, Verein für Socialpolitik / German Economic Association.
    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. David Card, 1990. "The Impact of the Mariel Boatlift on the Miami Labor Market," ILR Review, Cornell University, ILR School, vol. 43(2), pages 245-257, January.
    4. Barry Edmonston, 2006. "Population dynamics in Germany: the role of immigration and population momentum," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 25(5), pages 513-545, December.
    5. 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.
    6. Joseph G. Altonji & David Card, 1991. "The Effects of Immigration on the Labor Market Outcomes of Less-skilled Natives," NBER Chapters, in: Immigration, Trade, and the Labor Market, pages 201-234, National Bureau of Economic Research, Inc.
    7. Edo Anthony, 2015. "The Impact of Immigration on Native Wages and Employment," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(3), pages 1151-1196, July.
    8. Giovanni Peri, 2014. "Do immigrant workers depress the wages of native workers?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-42, May.
    9. Bernt Bratsberg & Oddbjørn Raaum, 2012. "Immigration and Wages: Evidence from Construction," Economic Journal, Royal Economic Society, vol. 122(565), pages 1177-1205, December.
    10. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
    11. Anthony Edo, 2013. "The Impact of Immigration on Native Wages and Employment," Post-Print halshs-00881131, HAL.
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