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Does citizenship matter? The economic impact of naturalizations in Germany

Max Steinhardt ()

No 266, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano

Abstract: The paper analyzes whether citizenship acquisition affects the labor market performance of immigrants in Germany. The study uses actual micro data from the IAB employment sample, which covers more than 80% of the whole labor force in Germany. The econometric analysis is carried out using both cross-sectional and panel data techniques, which allow to disentangle the effects of self-selection and legal impact of citizenship acquisition. The estimates from a simple OLS specification suggest the existence of a wage premium of naturalized immigrants. Panel estimates show an immediate positive naturalization effect on wages and an accelerated wage growth in the years after the naturalization event. Both results are consistent with the argument that naturalization increases the labor market opportunities of immigrants in various ways.

Keywords: Naturalization; self-selection; socioeconomic integration (search for similar items in EconPapers)
JEL-codes: J31 J61 J68 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab and nep-mig
Date: 2008-11-30
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Related works:
Journal Article: Does citizenship matter? The economic impact of naturalizations in Germany (2012) Downloads
Working Paper: Does citizenship matter? The economic impact of naturalizations in Germany (2008) Downloads
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