A note on the immigrant-native gap in earnings
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This note analyzes earning differentials between foreigners and natives in Germany. We use the recent published 2012 wave of German social survey data (ALLBUS) to perform Mincer-style quintile regressions and Oaxaca-Blinder decompositions. People born outside Germany have an average earning loss for about -6.5 to -10 percent, relative to natives. Persons with foreign citizenship have even higher losses. They face penalties between -8.2 to -14.3 percent. Both groups are performing relatively better at the upper part than at the lower part of the income distribution. Decompositions show a 9.2 percent difference for immigrants, while the most of the gap itself is unexplained by differences in endowments. Individuals without German citizenship have a 15.8 percent difference. Here, more of the half remains unexplained.
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