The immigrant-native pay gap in Germany
This note analyzes income differences between foreigners and natives in Germany. Using social survey data (ALLBUS) for 2012, I use Mincer style quantile regressions and Oaxaca-Blinder decompositions to estimate the size of the income differential. People not born in Germany, have an income lose for about 6,5 to 10 per cent. People with a foreign citizenship have even higher income losses. They face penalties between 8 to 14 percent. Decomposition shows a 9,2 percent difference for immigrants, while most of the gap is unexplained. Individuals without German citizenship have a 15,8 percent difference. Here more of the half remain unexplained.
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