Unemployment and Wages of Ethnic Germans

QUARTERLY REVIEW OF ECONOMICS AND FINANCE, Vol. 37, Special Issue, 1997

Posted: 26 Feb 1997

See all articles by Klaus F. Zimmermann

Klaus F. Zimmermann

Global Labor Organization (GLO); UNU-MERIT; Maastricht University, Department of Economics; Free University Berlin; University of Bonn; Centre for Economic Policy Research (CEPR); Journal of Population Economics

Thomas K. Bauer

Rhine-Westphalia Institute for Economic Research (RWI-Essen); University of Bochum - Faculty of Economics; IZA Institute of Labor Economics

Abstract

This paper uses the immigration sample of the German Socioeconomic Panel to analyze the earnings and unemployment assimilation of ethnic Germans who entered West Germany within the last 10 years. The empirical analysis suggests that there is no earnings differential between immigrants from eastern Europe and comparable east Germans at the time of immigration. However, with longer time of residence the earnings of former east Europeans rise faster than those of east Germans. Migrants from Poland and the former USSR have higher unemployment risks than those from East Germany or Romania. Ethnic networks are shown to be very useful for a successful integration into the labor market.

JEL Classification: J61, J31

Suggested Citation

Zimmermann, Klaus F. and Bauer, Thomas K., Unemployment and Wages of Ethnic Germans. QUARTERLY REVIEW OF ECONOMICS AND FINANCE, Vol. 37, Special Issue, 1997, Available at SSRN: https://ssrn.com/abstract=3759

Klaus F. Zimmermann (Contact Author)

Global Labor Organization (GLO) ( email )

Bonn
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Centre for Economic Policy Research (CEPR)

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Thomas K. Bauer

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

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