Unemployment and Wages of Ethnic Germans

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Abstract
This paper uses the immigration sample of the German Socioeconomic Panel to analyse the earnings and unemployment assimilation of ethnic Germans who entered West Germany within the last ten 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. With longer time of residence the earnings of former East Europeans rise faster than those of East Germans, however. 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 labour market.
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