The Immigrant Wage Gap in Germany

12 Pages Posted: 26 Nov 2008

See all articles by Alisher Aldashev

Alisher Aldashev

ZEW – Leibniz Centre for European Economic Research

Johannes Gernandt

Center for European Economic Research (ZEW)

Stephan L. Thomsen

Leibniz Universität Hannover - Institute of Economics; IZA Institute of Labor Economics; ZEW – Leibniz Centre for European Economic Research - Labour Markets, Human Resources and Social Policy Department

Date Written: 2008

Abstract

Immigrants consist of foreigners and citizens with migration background. We analyze the wage gap between natives and these two groups in Germany. The estimates show a substantial gap for both groups with respect to natives. Discarding immigrants who completed education abroad reduces much of the immigrants' wage gap. This implies educational attainment in Germany is an important component of economic integration and degrees obtained abroad are valued less.

Keywords: Immigration, wage gap, decomposition, Germany

JEL Classification: J61, J31, J15

Suggested Citation

Aldashev, Alisher and Gernandt, Johannes and Thomsen, Stephan Lothar, The Immigrant Wage Gap in Germany (2008). ZEW - Centre for European Economic Research Discussion Paper No. 08-089, Available at SSRN: https://ssrn.com/abstract=1307677 or http://dx.doi.org/10.2139/ssrn.1307677

Alisher Aldashev (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Johannes Gernandt

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Stephan Lothar Thomsen

Leibniz Universität Hannover - Institute of Economics ( email )

United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

ZEW – Leibniz Centre for European Economic Research - Labour Markets, Human Resources and Social Policy Department ( email )

P.O.Box 10 34 43
D-68034
Germany

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