Returns to Citizenship? Evidence from Germany's Recent Immigration Reforms

61 Pages Posted: 7 May 2014

See all articles by Christina Gathmann

Christina Gathmann

Luxembourg Institute for Socio-Economic Research; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute)

Nicolas Keller

Heidelberg University

Multiple version iconThere are 2 versions of this paper

Date Written: April 5, 2014

Abstract

Immigrants in many countries have lower employment rates and lower earnings than natives. We study whether a more liberal access to citizenship improves the economic integration of immigrants. Our analysis relies on two major immigration reforms in Germany, a country with a weak record of immigrant assimilation. For identification, we exploit discontinuities in the reforms’ eligibility rules. We find few returns of citizenship for men, but substantial returns for women. Returns are also larger for poorer and more recent immigrants, but essentially zero for traditional guest workers. Overall, liberalization of citizenship provides some economic benefits but is unlikely to result in full integration of immigrants in the host country.

JEL Classification: J240, J310, J610, K370

Suggested Citation

Gathmann, Christina and Keller, Nicolas, Returns to Citizenship? Evidence from Germany's Recent Immigration Reforms (April 5, 2014). CESifo Working Paper Series No. 4738, Available at SSRN: https://ssrn.com/abstract=2432911

Christina Gathmann (Contact Author)

Luxembourg Institute for Socio-Economic Research ( email )

11, Porte des Sciences
Campus Belval – Maison des Sciences Humaines
Esch-sur-Alzette, L-4366
Luxembourg

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

IZA Institute of Labor Economics

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Bonn, D-53072
Germany

HOME PAGE: http://www.iza.org/index_html?lang=en&mainframe=http%3A//www.iza.org/en/webcontent/personnel/photos%

CESifo (Center for Economic Studies and Ifo Institute) ( email )

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Munich, DE-81679
Germany

HOME PAGE: http://www.stanford.edu/~cgathman

Nicolas Keller

Heidelberg University ( email )

Grabengasse 1
Heidelberg, 69117
Germany

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