The Wage Impact of Immigration in Germany: New Evidence for Skill Groups and Occupations

38 Pages Posted: 24 Apr 2009

See all articles by Max Friedrich Steinhardt

Max Friedrich Steinhardt

Free University of Berlin (FUB) - Department of Business and Economics; IZA Institute of Labor Economics; Centro Studi Luca D'Agliano (LdA); Hamburg Institute of International Economics (HWWI)

Date Written: April 21, 2009

Abstract

The paper contributes to the ongoing debate about the adequate technique to identify the impact of immigration. Initially the regression analysis on the basis of education-experience cells reveals that the impact of immigration on native wages in Germany is negative, but small. The subsequent analysis on the basis of occupations using the same data yields a considerably higher adjustment coefficient and indicates strong wage effects within primary service occupations with a magnitude comparable to results for the US. The analysis therefore demonstrates that the use of formal qualifications as an exclusive classification criterion may lead to an underestimation of the impact of immigration.

Keywords: Labour market impact of migration, skill group approach, occupations, fixed effects model

JEL Classification: C23, J15, J31, J42, J60

Suggested Citation

Steinhardt, Max Friedrich, The Wage Impact of Immigration in Germany: New Evidence for Skill Groups and Occupations (April 21, 2009). Available at SSRN: https://ssrn.com/abstract=1392862 or http://dx.doi.org/10.2139/ssrn.1392862

Max Friedrich Steinhardt (Contact Author)

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