Earnings Prospects for People With Migration Background in Germany

36 Pages Posted: 31 May 2007 Last revised: 26 Aug 2008

See all articles by Alisher Aldashev

Alisher Aldashev

ZEW – Leibniz Centre for European Economic Research

Johannes Gernandt

Center for European Economic Research (ZEW)

Stephan L. Thomsen

Leibniz Universität Hannover - Institute of Economics; IZA Institute of Labor Economics; ZEW – Leibniz Centre for European Economic Research - Labour Markets, Human Resources and Social Policy Department

Date Written: 2007

Abstract

Less than half of the people with migration background living in Germany possess foreign citizenship. Hence, using citizenship to analyze economic issues of immigration may be problematic for two reasons. On the one hand, a quite substantial share of persons with migration background is neglected in the group of interest, and, on the other hand, the reference group (native Germans) may be contaminated by effects from naturalized immigrants. This paper utilizes a wider definition covering all persons with migration background to analyze the earnings prospects. To shed light on differences to the common use of citizenship, estimates are presented in comparison to foreigner and German citizens. The results show that persons with migration background have similar earnings prospects to foreigners. Moreover, earnings prospects for native Germans do not differ much from those of German citizenship. Therefore, using citizenship to approximate natives and non-natives when analyzing earnings issues seems to be reasonable. A second question of the paper is whether degrees obtained in Germany lead to better earnings prospects compared to degrees obtained abroad for persons with migration background. Independently of gender and skill level, the estimates affirm higher earnings to educational attainment in Germany.

Keywords: Migration background, earnings prospects, education, Germany

JEL Classification: J61, I12, J15

Suggested Citation

Aldashev, Alisher and Gernandt, Johannes and Thomsen, Stephan Lothar, Earnings Prospects for People With Migration Background in Germany (2007). ZEW - Centre for European Economic Research Discussion Paper No. 07-031. Available at SSRN: https://ssrn.com/abstract=988652 or http://dx.doi.org/10.2139/ssrn.988652

Alisher Aldashev (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Johannes Gernandt

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Stephan Lothar Thomsen

Leibniz Universität Hannover - Institute of Economics ( email )

United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

ZEW – Leibniz Centre for European Economic Research - Labour Markets, Human Resources and Social Policy Department ( email )

P.O.Box 10 34 43
D-68034
Germany

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