Wage assimilation of foreigners on the German labour market: the country of origin is of high importance

Abstract

"The integration of foreign workers into the labour markets of host countries is a major concern in policy, as their contribution to the national economy of the host country depends directly on their success on the labour market. Therefore, this study analyses the development of outcomes of male foreign workers from all important sending countries across time using longitudinal employment register data. A cohort analysis of individuals entering the German labour market in 2000 shows significant differences with regard to the assimilation processes between nationalities. We find that foreigners starting with higher entry wages experience greater wage growth in subsequent years. A good deal of the wage growth observed for the most successful nationalities can, however, be explained by sample composition effects. In contrast, observed characteristics such as tenure, transitions to larger establishments and successful searches for better-paying industries play a more important role for nationalities showing moderate adjustment." (Author's abstract, IAB-Doku) ((en))

Cite article

Lehmer, F. & Ludsteck, J. (2013): Lohnanpassung von Ausländern am deutschen Arbeitsmarkt: Das Herkunftsland ist von hoher Bedeutung. (IAB-Kurzbericht 01/2013), Nürnberg, 7 p.