The immigrant-native pay gap in Germany

Humpert, Stephan (2013): The immigrant-native pay gap in Germany.

Abstract

This note analyzes income differences between foreigners and natives in Germany. Using social survey data (ALLBUS) for 2012, I use Mincer style quantile regressions and Oaxaca-Blinder decompositions to estimate the size of the income differential. People not born in Germany, have an income lose for about 6,5 to 10 per cent. People with a foreign citizenship have even higher income losses. They face penalties between 8 to 14 percent. Decomposition shows a 9,2 percent difference for immigrants, while most of the gap is unexplained. Individuals without German citizenship have a 15,8 percent difference. Here more of the half remain unexplained.

• Item Type: MPRA Paper
• Language: English
• Keywords: immigration; income; pay gap; Germany; ALLBUS
• Subjects: F - International Economics > F2 - International Factor Movements and International Business > F22 - International Migration; F - International Economics > F6 - Economic Impacts of Globalization > F66 - Labor; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage Differentials; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J61 - Geographic Labor Mobility ; Immigrant Workers

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