Wages of migrant and native employees in Germany: new light on an old issue

"The German workforce is expected to decline in future and labour-oriented immigration should counteract labour shortages. Fair wages in Germany set incentives for foreigners to immigrate there. Therefore this paper aims to shed new light on the decomposition of the wage gap between foreign and...

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Bibliographic Details
Main Authors: Brunow, Stephan, Jost, Oskar
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Nürnberg 2019
IAB
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19307882124911250649-Wages-of-migrant-and-native-em.htm
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author Brunow, Stephan
Jost, Oskar
author_facet Brunow, Stephan
Jost, Oskar
collection Library items
description "The German workforce is expected to decline in future and labour-oriented immigration should counteract labour shortages. Fair wages in Germany set incentives for foreigners to immigrate there. Therefore this paper aims to shed new light on the decomposition of the wage gap between foreign and native full-time employees. Using the Mincerian wage equation and the threefold Oaxaca-Blinder decomposition reveals that the wage gap is mostly explained by observable characteristics (endowments), especially location, labour market experience and firm characteristics. Productivity differences can be disregarded with the exception of labour market experience, as foreigners have much flatter experience profiles than native workers. This effect holds for several specifications and potential selectivity and vanishes for foreigners that have resided in Germany for at least ten years and naturalised foreigners. Our results lead to the conclusion that 'discrimination' is negligible from an economic point of view and foreigners receive equal pay."
format TEXT
geographic Germany
id 19307882124911250649_1b7895a963c84757b88cec4b82e88b24
institution ETUI-European Trade Union Institute
is_hierarchy_id 19307882124911250649_1b7895a963c84757b88cec4b82e88b24
is_hierarchy_title Wages of migrant and native employees in Germany: new light on an old issue
language English
physical 48 p.
Digital
publishDate 2019
publisher Nürnberg
IAB
spellingShingle Brunow, Stephan
Jost, Oskar
wages
wage differential
migrant worker
Wages of migrant and native employees in Germany: new light on an old issue
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=138347995652
title Wages of migrant and native employees in Germany: new light on an old issue
topic wages
wage differential
migrant worker
url https://www.labourline.org/KENTIKA-19307882124911250649-Wages-of-migrant-and-native-em.htm