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Assimilation and cohort effects for German immigrants

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  • Gundel, Sebastian
  • Peters, Heiko

Abstract

Demographic change and the rising demand for highly qualified labor in Germany attracts notice to the analysis of immigration. In addition, the pattern of immigration changed markedly during the past decades. Therefore we use the latest data of the German Socioeconomic Panel up to the year 2006 in order to investigate the economic performance of immigrants. We perform regressions of three pooled cross sections (1986, 1996, 2006) to estimate assimilation and quality of immigrants as reflected by their earnings. Further we take the heterogeneity of immigrants into account by separating them by country of origin. The rising wage inequality in Germany since the mid nineties will also be considered. We find a negative wage gap and a yearly assimilation rate of 2.3 percent. Due to a changing immigration pattern the cohort quality is declining.

Suggested Citation

  • Gundel, Sebastian & Peters, Heiko, 2008. "Assimilation and cohort effects for German immigrants," CAWM Discussion Papers 6, University of Münster, Münster Center for Economic Policy (MEP).
    • Handle: RePEc:zbw:cawmdp:6
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    Cited by:

    1. Glitz, Albrecht, 2014. "Ethnic segregation in Germany," Labour Economics, Elsevier, vol. 29(C), pages 28-40.
    2. Viola Angelini & Laura Casi & Luca Corazzini, 2015. "Life satisfaction of immigrants: does cultural assimilation matter?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(3), pages 817-844, July.
    3. Beyer, Robert, 2016. "The Labor Market Performance of Immigrants in Germany," VfS Annual Conference 2016 (Augsburg): Demographic Change 145799, Verein für Socialpolitik / German Economic Association.
    4. Treude, Barbara, 2014. "The Effect of Ethnic Clustering on Migrant Integration in Germany," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100584, Verein für Socialpolitik / German Economic Association.
    5. Sekou Keita & Jérôme Valette, 2019. "Natives’ Attitudes and Immigrants’ Unemployment Durations," Demography, Springer;Population Association of America (PAA), vol. 56(3), pages 1023-1050, June.
    6. Berbée, Paul & Stuhler, Jan, 2023. "The integration of migrants in the German labor market: Evidence over 50 years," ZEW Discussion Papers 23-020, ZEW - Leibniz Centre for European Economic Research.
    7. Zimmermann, Klaus F. & Kahanec, Martin & Giulietti, Corrado & Guzi, Martin & Barrett, Alan & Maitre, Bertrand, 2012. "Study on Active Inclusion of Migrants," IZA Research Reports 43, Institute of Labor Economics (IZA).
    8. Robert C. M. Beyer, 2017. "The Performance of Immigrants in the German Labor Market," SOEPpapers on Multidisciplinary Panel Data Research 892, DIW Berlin, The German Socio-Economic Panel (SOEP).
    9. Florian Lehmer & Johannes Ludsteck, 2012. "Wage Assimilation of Immigrants: Which Factors Close the Gap? – Evidence from Germany," ERSA conference papers ersa12p262, European Regional Science Association.
    10. Florian Lehmer & Johannes Ludsteck, 2015. "Wage Assimilation of Foreigners: Which Factors Close the Gap? Evidence From Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(4), pages 677-701, December.
    11. Aldashev Alisher & Gernandt Johannes & Thomsen Stephan L., 2012. "The Immigrant-Native Wage Gap in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(5), pages 490-517, October.

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    More about this item

    JEL classification:

    • 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
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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