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Earnings Prospects for People with Migration Background in Germany

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  • Thomsen, Stephan L.
  • Gernandt, Johannes
  • Aldashev, Alisher

Abstract

Less than half of the people with migration background living in Germany possess foreign citizenship. Hence, using citizenship to analyze economic issues of immigration may be problematic for two reasons. On the one hand, a quite substantial share of persons with migration background is neglected in the group of interest, and, on the other hand, the reference group (native Germans) may be contaminated by effects from naturalized immigrants. This paper utilizes a wider definition covering all persons with migration background to analyze the earnings prospects. To shed light on differences to the common use of citizenship, estimates are presented in comparison to foreigner and German citizens. The results show that persons with migration background have similar earnings prospects to foreigners. Moreover, earnings prospects for native Germans do not differ much from those of German citizenship. Therefore, using citizenship to approximate natives and non- natives when analyzing earnings issues seems to be reasonable. A second question of the paper is whether degrees obtained in Germany lead to better earnings prospects compared to degrees obtained abroad for persons with migration background. Independently of gender and skill level, the estimates affirm higher earnings to educational attainment in Germany.

Suggested Citation

  • Thomsen, Stephan L. & Gernandt, Johannes & Aldashev, Alisher, 2007. "Earnings Prospects for People with Migration Background in Germany," ZEW Discussion Papers 07-031 [rev.], ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:6087
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    Cited by:

    1. Schmähl, Winfried, 2008. "Immigration from outside Europe: chance or challenge for social security? Dimensions of a complex topic," Working papers of the ZeS 05/2008, University of Bremen, Centre for Social Policy Research (ZeS).
    2. Ohlert, Clemens & Beblo, Miriam & Wolf, Elke, 2016. "Competition, Collective Bargaining, and Immigrant Wage Gaps Within German Establishments," WiSo-HH Working Paper Series 35, University of Hamburg, Faculty of Business, Economics and Social Sciences, WISO Research Laboratory.
    3. Evgeniya Polyakova & Larisa Smirnykh, 2015. "The Impact of Sectoral Segregation on the Earning Differential between Natives and Immigrants in Russia," HSE Working papers WP BRP 110/EC/2015, National Research University Higher School of Economics.
    4. Alisher Aldashev & Johannes Gernandt & Stephan L. Thomsen, 2007. "Language Usage, Participation, Employment and Earnings," FEMM Working Papers 07018, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    5. Wido Geis, 2010. "High Unemployment in Germany: Why do Foreigners Suffer Most?," ifo Working Paper Series 90, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.

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    More about this item

    Keywords

    Migration background; earnings prospects; education; Germany;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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