Do High-Skilled Immigrants find Jobs Faster than Low-Skilled Immigrants?

Rüdiger Wapler and Daniela Hochfellner

VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy from Verein für Socialpolitik / German Economic Association

Abstract: This paper investigates the role that pre-immigration skills play in immigrants job-finding processes in Germany. We first show theoretically that the job-finding rate for the high-skilled varies depending on their search strategy: if they are prepared to look for both unskilled as well as skilled jobs (cross-skill matching), then their expected time to find a job is lower compared to the low-skilled. However, if the high-skilled are only prepared to look for and take up skilled jobs (ex post segmented matching), it might be that the high-skilled actually need longer to find a job. We then provide empirical evidence by studying the labour-market integration process of Ethnic Germans, one of the largest immigration groups in Germany, using novel German administrative data. Applying proportional hazard models, our estimates generally support the theoretical predictions: in case of cross-skill matching, the job finding rate of the high- and low-skilled does not differ significantly. However, if the length of time a job match holds is accounted for, then we do find that the high-skilled are significantly faster than the low-skilled. If the high-skilled only search for skilled jobs, the likelihood of finding a job is about 50% lower compared to the low-skilled.

JEL-codes: J15 J61 J64 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-eur
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Citations: View citations in EconPapers (2)

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