Earnings Assimilation of Immigrants in Germany: The Importance of Heterogeneity and Attrition Bias

42 Pages Posted: 21 Feb 2008

See all articles by Michael Fertig

Michael Fertig

Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI Essen); IZA Institute of Labor Economics

Stefanie Schurer

Victoria University of Wellington - School of Economics and Finance

Date Written: August 2007

Abstract

Heterogeneity in the ethnic composition of Germany's immigrant population renders general conclusions on the degree of economic integration difficult. Using a rich longitudinal data-set, this paper tests for differences in economic assimilation profiles of four entry cohorts of foreign-born immigrants and ethnic Germans. The importance of time-invariant individual unobserved heterogeneity and panel attrition in determining the speed of assimilation is analysed. We find evidence for heterogeneity in the assimilation profiles and for robust assimilation profiles for two entry cohorts only. Omitted variables, systematic sample attrition and the presence of second generation immigrants in the sample influence the speed of assimilation, but do not change the overall picture.

Keywords: Unobserved heterogeneity, panel attrition, sample selection, fixed effects, migration

JEL Classification: I12, C23

Suggested Citation

Fertig, Michael and Schurer, Stefanie, Earnings Assimilation of Immigrants in Germany: The Importance of Heterogeneity and Attrition Bias (August 2007). SOEPpaper No. 30, Available at SSRN: https://ssrn.com/abstract=1096143 or http://dx.doi.org/10.2139/ssrn.1096143

Michael Fertig (Contact Author)

Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI Essen) ( email )

Hohenzollernstrasse 1-3
45128 Essen
Germany
++49 (201) 8149-201 (Phone)
++49 (201) 8149-236 (Fax)

IZA Institute of Labor Economics

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

Stefanie Schurer

Victoria University of Wellington - School of Economics and Finance ( email )

P.O. Box 600
Wellington 6001
New Zealand
+64-4-4636708 (Phone)

HOME PAGE: http://www.victoria.ac.nz/sef/staff/stefanie-schurer.aspx

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
151
Abstract Views
1,688
Rank
350,945
PlumX Metrics