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Immigration, Trade and Wages in Germany

  • Yaya, Mehmet-Erdem

This paper examines the effects of several macroeconomic variables such as GDP, imports, unemployment, immigration and emigration on the real wages and salaries of German laborers. Annual data for 49 years has been used to estimate twelve different regressions, trying to capture the effect of these variables on the real wages and salaries in Germany while considering the unification of West-East Germany with a dummy variable. The results are intriguing, and contradicting with most of the earlier literature. The paper concludes that wages are unresponsive to the macroeconomics changes most of the time while salaries are more sensitive to macroeconomic changes. The paper also contributes to the literature by investigating the effects of macroeconomic variables on the salary and wage changes of different gender groups.

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File URL: http://mpra.ub.uni-muenchen.de/505/1/MPRA_paper_505.pdf
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File URL: http://mpra.ub.uni-muenchen.de/14968/1/MPRA_paper_14968.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 505.

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Date of creation: Jun 2005
Date of revision: Jun 2006
Handle: RePEc:pra:mprapa:505
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  1. Bilal, S. & Grether, J.-M. & de Melo, J., 1998. "Determinants of Attitudes Towards Immigration: A Trade-Theoretic Approach," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 98.12, Institut d'Economie et Econométrie, Université de Genève.
  2. Stephen Drinkwater & Paul Levine & Emanuela Lotti & Joseph Pearlman, 2003. "The Economic Impact of Migration: A Survey," School of Economics Discussion Papers 0103, School of Economics, University of Surrey.
  3. Thompson, Henry, 1997. "Free trade and income redistribution across labor groups: Comparative statics for the U.S. economy," International Review of Economics & Finance, Elsevier, vol. 6(2), pages 181-192.
  4. Zimmermann, Klaus F, 1996. "Wage and Mobility Effects of Trade and Migration," CEPR Discussion Papers 1318, C.E.P.R. Discussion Papers.
  5. John P. Haisken-DeNew & Klaus F. Zimmermann, . "Native Wage Impacts of Foreign Labor," Working Papers 9408, SELAPO Center for Human Resources.
  6. Elise S. Brezis & Paul Krugman, 1993. "Immigration, Investment and Real Wages," NBER Working Papers 4563, National Bureau of Economic Research, Inc.
  7. Gaston, Noel & Nelson, Douglas, 2000. "Immigration and Labour-Market Outcomes in the United States: A Political-Economy Puzzle," Oxford Review of Economic Policy, Oxford University Press, vol. 16(3), pages 104-14, Autumn.
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