Flat Experience Curve Profiles of Foreign Employees in Germany

Abstract This paper sheds light on the wage structure of foreign and German employees who are subject to social security contributions in fulltime employment and focuses on the experience structure. Existing evidence suggests that additional labour market experience is rewarded less for migrants tha...

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Main Authors: Stephan Brunow, Oskar Jost
Format: Article
Language:deu
Published: Sciendo 2021-11-01
Series:Wirtschaftsdienst
Online Access:https://doi.org/10.1007/s10273-021-3047-6
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author Stephan Brunow
Oskar Jost
author_facet Stephan Brunow
Oskar Jost
author_sort Stephan Brunow
collection DOAJ
description Abstract This paper sheds light on the wage structure of foreign and German employees who are subject to social security contributions in fulltime employment and focuses on the experience structure. Existing evidence suggests that additional labour market experience is rewarded less for migrants than for their German counterparts. We identify and discuss reasons and explanations for migrants’ flat experience curves, which is particularly important in the light of the debate on inequality between both groups. These explanations include: the recognition of vocational training degrees, the successful passing of vocational training in Germany, German citizenship by naturalisation, and the labour market experience. After ten to 15 years in the German labour market, we identify convergence in the returns to labour market experience.
format Article
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institution Kabale University
issn 0043-6275
1613-978X
language deu
publishDate 2021-11-01
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series Wirtschaftsdienst
spelling doaj-art-2adb9d09f1954409aa52db8d8c51bc972025-02-02T11:02:38ZdeuSciendoWirtschaftsdienst0043-62751613-978X2021-11-011011188989310.1007/s10273-021-3047-6Flat Experience Curve Profiles of Foreign Employees in GermanyStephan Brunow0Oskar Jost1Professur für VWL, insb. Arbeitsmarktökonomik, Hochschule der Bundesagentur für Arbeit (HdBA)Regionales Forschungsnetz (RFN), Inst. f. Arbeitsmarkt- und BerufsforschungAbstract This paper sheds light on the wage structure of foreign and German employees who are subject to social security contributions in fulltime employment and focuses on the experience structure. Existing evidence suggests that additional labour market experience is rewarded less for migrants than for their German counterparts. We identify and discuss reasons and explanations for migrants’ flat experience curves, which is particularly important in the light of the debate on inequality between both groups. These explanations include: the recognition of vocational training degrees, the successful passing of vocational training in Germany, German citizenship by naturalisation, and the labour market experience. After ten to 15 years in the German labour market, we identify convergence in the returns to labour market experience.https://doi.org/10.1007/s10273-021-3047-6
spellingShingle Stephan Brunow
Oskar Jost
Flat Experience Curve Profiles of Foreign Employees in Germany
Wirtschaftsdienst
title Flat Experience Curve Profiles of Foreign Employees in Germany
title_full Flat Experience Curve Profiles of Foreign Employees in Germany
title_fullStr Flat Experience Curve Profiles of Foreign Employees in Germany
title_full_unstemmed Flat Experience Curve Profiles of Foreign Employees in Germany
title_short Flat Experience Curve Profiles of Foreign Employees in Germany
title_sort flat experience curve profiles of foreign employees in germany
url https://doi.org/10.1007/s10273-021-3047-6
work_keys_str_mv AT stephanbrunow flatexperiencecurveprofilesofforeignemployeesingermany
AT oskarjost flatexperiencecurveprofilesofforeignemployeesingermany