Do better pre-migration skills accelerate immigrants' wage assimilation?

Hirsch, Boris; Jahn, Elke J.; Toomet, Ott; Hochfellner, Daniela

doi:10.1016/j.labeco.2014.04.004

Cited by 17 publications

(6 citation statements)

References 32 publications

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“…We are aware that this proxy is rather crude and disregards periods of unregistered non-employment after immigration to Germany. Recent research by Hirsch et al (2014), however, indicated that periods of unregistered non-employment while migrating to Germany are typically rather short, that is, only slightly longer than a year on average. For this reason, we restrained ourselves from including immigrants’ proxied years since migration, age at entry, and immigration cohort in the standard wage regressions presented in Table 2, and we shall use this information in only a back-of-the-envelope manner in the following discussion.…”

Section: Resultsmentioning

confidence: 99%

“…To mitigate possible effects of naturalization, we follow Brücker and Jahn (2011) and classify all individuals as immigrants who are reported as foreign citizens in their first observation available. Another important immigrant group, which possesses German citizenship, consists of so-called ethnic Germans or (Spät-)Aussiedler (for details on ethnic German immigrants, see Hirsch, Jahn, Toomet, and Hochfellner 2014). Since ethnic Germans’ labor market performance in general resembles that of other immigrants (see Glitz 2012; Hirsch et al 2014), we again follow Brücker and Jahn (2011) and classify them as immigrants.…”

Section: Datamentioning

confidence: 99%

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Is There Monopsonistic Discrimination against Immigrants?

Hirsch¹,

Jahn

2015

ILR Review

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The authors investigate immigrants' and natives' labor supply to the firm within an estimation approach based on a dynamic monopsony framework. Applying duration models that account for unobserved worker heterogeneity to a large administrative employer-employee data set for germany, they find that immigrants supply labor less elastically to firms than do natives. Under monopsonistic wage setting, the estimated elasticity differential predicts a 7.7 log points wage penalty for immigrants thereby accounting for the entire unexplained native-immigrant wage differential of 5.8 to 8.2 log points. When further distinguishing immigrant groups differing in their time spent in the german labor market, their immigration cohort, and their age at entry, the authors find that the observed unexplained wage differential is larger for those groups that show a larger elasticity differential relative to natives. These findings not only suggest that search frictions are a likely cause of employers' more pronounced monopsony power over their immigrant workers but also imply that employers profit from discriminating against immigrants.*Boris hirsch is a Postdoctoral Researcher at the economics Department at the University of erlangennuremberg and Research Fellow at the Institute for the study of labor (IZA). elke J. Jahn is a senior Researcher at the Institute for employment Research, nuremberg, Professor at the economics Department at the University of Bayreuth, and Research Fellow at the IZA. We thank Marianne Bertrand, nils Braakmann, Bernt Bratsberg, herbert Brücker, Bart cockx, hartmut egger, giovanni Facchini, katja görlitz, Tom Mckenzie, Michael neugart, Anne Morrison Piehl, claus schnabel, Jan van Ours, Till von Wachter, Thomas Zwick, and three anonymous referees for useful suggestions. We further appreciate comments received from participants of the 10th IZA annual migration meeting in Jerusalem, the Royal economic society (Res)

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Section: Resultsmentioning

confidence: 99%

Section: Datamentioning

confidence: 99%

Is There Monopsonistic Discrimination against Immigrants?

Hirsch¹,

Jahn

2015

ILR Review

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“…Host country-specific resources are important to account for, like proficiency in the majority language (see Chiswick & Miller 2002) and the social capital that comes with the establishment of a social network (Putnam 2000). For Germany, many studies have confirmed that migrants with a high level of German proficiency perform remarkably better on the labour market than those with little knowledge of the language (Lancee & Hartung 2012;Hirsch et al 2014;Koopmans 2016). Similarly, studies show that social ties to German natives in particular increase not just the probability of employment, but also the occupational status of the job opportunities found through these channels (Koenig, Maliepaard & Güveli 2016;Kalter & Kogan 2014;Lancee & Hartung 2012;Kanas, van Tubergen & van der Lippe 2011).…”

Section: Theoretical Framework and Existing Findingsmentioning

confidence: 99%

The labor market participation of recently-arrived immigrant women in Germany

Schieckoff

Diehl

2021

JFamRes

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Objective: This article investigates the role of motivation in female immigrants' labour force participation. Focusing on recently-arrived immigrants (who have resided in the host country for 18 months or less), we compare the outcomes of two different ethnic groups in Germany: Poles and Turks. Background: The immigrant integration literature tends to focus on the role of resources in immigrant labour market integration. However, when examining particularly the labour force participation of female immigrants, their motivation for joining the labour force is also important. Previous studies of female immigrants in Germany have often neglected this consideration, which includes aspects like culturally-specific gender values and perceived ethnic discrimination. Method: We use data from the SCIP project (Diehl et al., 2015) to conduct logistic regressions on female immigrants’ labour force participation. Our sample includes 829 female immigrants from Poland and Turkey between the ages of 18-60, who were either active in the labour force or were 'at risk' of entering. Results: In line with previous studies, our analysis shows that female immigrants' labour market resources, mainly their prior work experience and German proficiency, greatly reduce the ethnic gap in labour force participation rates. Moreover, motivational factors have a large impact on this outcome for both groups, and greatly enhance the picture that our empirical models present. However, we find no evidence that perceived ethnic discrimination plays an important role. Conclusion: Our analysis indicates that when seeking to understand the labour market participation of female immigrants, their resources and motivation should be seen as key components of a gender-sensitive analysis.

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“…Many of the research activities of the RDC's staff members are based on collaborations with national and international external researchers (e.g. Card et al 2013;Hirsch et al 2014;Bender et al 2016;Fackler et al 2016). This guarantees an intensive exchange of knowledge on new econometric and statistical methods, new trends in data handling, or the improvement of data collection and survey techniques.…”

Section: Research Activitiesmentioning

confidence: 99%

Giving the International Scientific Community Access to German Labor Market Data: A Success Story

Müller

Möller

2018

Data-Driven Policy Impact Evaluation

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In Germany, as in other countries, social security data offer a great opportunity for producing cutting-edge empirical analyses. They are the basis for answering relevant research questions as well as for evaluation studies and evidence-based policy-making. Data resources are especially valuable if they are linked to establishment and individual survey data. As the research unit of the Federal Employment Agency, the Institute for Employment Research (Institut für Arbeitsmarkt-und Berufsforschung (IAB)) is responsible for extracting data from administrative processes to produce microdatasets that can be used for empirical research on a wide range of labor market topics. In the past, the data were generally kept within the organization, which not only led to a drastic underutilization of the data resources but also limited collaboration projects with national and international academic scholars. There were only rare examples of knowledge spillovers from the international research community to the Institute's research projects. With some major exceptions, researchers at the Institute faced difficulties in keeping pace with the enormous evolution of (micro-) econometric methods. As a consequence, data analysis was mainly descriptive, and publication in refereed international journals was the exception rather than the rule.

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Do better pre-migration skills accelerate immigrants' wage assimilation?

Cited by 17 publications

References 32 publications

Is There Monopsonistic Discrimination against Immigrants?

Is There Monopsonistic Discrimination against Immigrants?

The labor market participation of recently-arrived immigrant women in Germany

Giving the International Scientific Community Access to German Labor Market Data: A Success Story

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