Reservation Wages of First and Second Generation Migrants

Klaus Zimmermann (), Amelie Constant, , and Annabelle Krause-Pilatus
Authors registered in the RePEc Author Service: Ulf Rinne

No 8208, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper analyzes the reservation wages of first and second generation migrants. Based on recently collected and rich survey data of a representative inflow sample into unemployment in Germany, we empirically test the hypothesis that reservation wages increase from first to second generation migrants. Two extensions of the basic job search model, namely an unknown wage offer distribution and different reference standards, provide theoretical justifications for this conjecture. In both extensions, changing frames of reference are identified as a channel through which the phenomenon of increasing reservation wages may arise. In as far as language skills or self-evaluated returns to characteristics reflect a person?s frames of reference, we find empirical support for this mechanism to be present.

Keywords: Migration; Ethnic identity; Ethnosizer; Germany; Unemployment; Job search; Reservation wages (search for similar items in EconPapers)
JEL-codes: F22 J15 J61 J64 (search for similar items in EconPapers)
Date: 2011-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Reservation wages of first- and second-generation migrants (2017)
Working Paper: Reservation wages of first- and second-generation migrants (2016)
Working Paper: Reservation Wages of First and Second Generation Migrants (2010)
Working Paper: Reservation Wages of First and Second Generation Migrants (2010)
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