Date of Award

12-2014

Document Type

Dissertation

Degree Name

Doctor of Philosophy (PhD)

Legacy Department

Economics

Advisor

Tamura, Robert

Committee Member

Sauer , Raymond

Committee Member

Baier , Scott

Committee Member

Ivankovic , Miren

Abstract

The first chapter of this dissertation is using data from the German SOEP panel, and I analyze the assimilation of immigrants in terms of initial wage gap and assimilation rate. The analysis consists of a basic assimilation model, a cohort model, and a source country specific model. The source country specific model allows us to distinguish assimilation rates for different groups of immigrants. I find that despite having the highest education of all immigrants, East European immigrants have the largest wage gap. Secondly individuals immigrating from former East Germany have a larger wage gap than immigrants from Italy and Turkey. For East Germans I find little evidence of assimilation. In the second chapter of this dissertation is using data from the German SOEP panel, and I analyze the assimilation for immigrants in terms of initial wage gap and assimilation rate under self-selection. This paper extends the first paper by taking employment probabilities into account during the estimation process. I find that initial wage gaps in general are larger but also relative orderings between different countries of origin are different. A negative and significant lambda leads me to believe that a self-selection problem was present and was corrected by a Heckman self-selection model applied in the analysis section of this paper.

Included in

Economics Commons

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