Do Immigrants Reduce Natives' Wages?: Evidence from Germany

University of Munich Working Paper 97-05

Posted: 4 Mar 1998

See all articles by Thomas K. Bauer

Thomas K. Bauer

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

Date Written: 1997

Abstract

This paper investigates the effects of immigration on the wages of native workers in Germany. The analysis differentiates native and foreign workers according to their occupational status. The estimation of a translog production using 1990 cross-section data reveals mixed results regarding the production relationship between different native and foreign groups. The effects of immigration on the wages of natives appears to be numerically very small. Separability tests show that the use of an aggregate index for foreign labor and the treatment of natives and foreigners as similar inputs is not appropriate.

JEL Classification: J23, J61

Suggested Citation

Bauer, Thomas K., Do Immigrants Reduce Natives' Wages?: Evidence from Germany (1997). University of Munich Working Paper 97-05, Available at SSRN: https://ssrn.com/abstract=60951

Thomas K. Bauer (Contact Author)

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