Wage Performance of Immigrants in Germany

Robert Beyer

German Economic Review, 2019, vol. 20, issue 4, e141-e169

Abstract: This paper updates and deepens our understanding of the wage performance of immigrants in Germany. Using the German Socio‐Economic Panel, it documents that immigrant workers initially earn on average 20% less than native workers with otherwise identical characteristics. The gap is smaller for immigrants from advanced countries, with good German language skills, and with a German degree, and larger for others. The gap declines gradually over time but at a decreasing rate and much faster for more recent cohorts. Less success in obtaining jobs with higher occupational autonomy explains half of the wage gap.

Date: 2019
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https://doi.org/10.1111/geer.12159

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