Transferability of Human Capital and Immigrant Assimilation: An Analysis for Germany

37 Pages Posted: 23 Jul 2014

See all articles by Leilanie Basilio

Leilanie Basilio

Ruhr Universität Bochum

Thomas K. Bauer

Rhine-Westphalia Institute for Economic Research (RWI-Essen); University of Bochum - Faculty of Economics; IZA Institute of Labor Economics

Anica Kramer

Rhine-Westphalia Institute for Economic Research (RWI-Essen); Ruhr Universität Bochum

Multiple version iconThere are 4 versions of this paper

Date Written: July 2014

Abstract

This paper investigates the transferability of human capital across countries and the contribution of imperfect human capital portability to the explanation of the immigrant-native wage gap. Using data for West Germany, our results reveal that, overall, education and in particular labor market experience accumulated in the home countries of the immigrants receive signifiantly lower returns than human capital obtained in Germany. We further find evidence for heterogeneity in the returns to human capital of immigrants across countries. Finally, imperfect human capital transferability appears to be a major factor in explaining the wage differential between natives and immigrants.

Keywords: Human Capital, Rate of Return, Immigration, Assimilation

JEL Classification: J61, J31, J24

Suggested Citation

Basilio, Leilanie and Bauer, Thomas K. and Kramer, Anica, Transferability of Human Capital and Immigrant Assimilation: An Analysis for Germany (July 2014). SOEPpaper No. 671. Available at SSRN: https://ssrn.com/abstract=2469797 or http://dx.doi.org/10.2139/ssrn.2469797

Leilanie Basilio (Contact Author)

Ruhr Universität Bochum ( email )

Universitätsstraße 150
Bochum, NRW 44780
Germany

Thomas K. Bauer

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany
+49 201 8149 264 (Phone)
+49 201 8149 284 (Fax)

HOME PAGE: http://www.rwi-essen.de

University of Bochum - Faculty of Economics ( email )

Universitätsstraße 150
Gebäude GC, Ebene 3, Raum 58
D-44780 Bochum
Germany
+02 34 32 28341 (Phone)
+02 34 32 14273 (Fax)

HOME PAGE: http://www.ruhr-uni-bochum.de/empwifo/

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany
+49 228 38 94 529 (Phone)
+49 228 38 94 510 (Fax)

Anica Kramer

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

Ruhr Universität Bochum ( email )

Universitätsstraße 150
Bochum, NRW 44780
Germany

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