A note on the immigrant-native gap in earnings

• Authors: Stephan Humpert
• Languages of publication: EN

Abstracts

EN

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.

Keywords

EN

immigration; earnings; pay gap; Germany; ALLBUS

• Publisher: University Service Publishing, Prague, Czech Republic
• Journal: International Economics Letters
• Year: 2013
• Volume: 2
• Issue: 4
• Pages: 41-49

Contributors

author

Stephan Humpert

• Redakce IEL, Univerzitní servis, s.r.o., Trnkovo nám. 1112/2, 152 00 Praha 5, Czech Republic