Browsing by Author "Auer, Anna Katharina"
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- Labor market disparities in Germany : comparing first-generation refugees with first-generation migrants between 2016 and 2019Publication . Auer, Anna Katharina; Reis, HugoThis thesis provides descriptive evidence on labor market disparities between refugees and other migrants in Germany between 2016 and 2019, using the SOEP survey. Applying a probit model for the employment and an OLS wage regression for the wage gap, we find an overall significant disadvantage for refugees in the labor market. Yet, the gaps decrease after controlling for observable characteristics (e.g. education, language proficiency, and length of residence) and year, state and region of origin fixed effects whereby male refugees face a 11 p.p. lower probability of employment. Expanding this specification to the wage framework with sector/occupation fixed effects, we find that male refugees earn 14 percent less per hour than their migrant counterpart, while for female refugees this gap becomes statistically not significant. This implies, occupational and sectoral sorting plays an important role for the wage gap for female refugees. Disentangling the effect for each of the 16 states, our findings suggest strong heterogeneity within Germany. Using an Oaxaca decomposition, we find that 63 percent of the employment gap and 45 percent of the wage gap can be attributed to differences in socioeconomic and demographic differences. Regarding the former, we find that age is the main driver. Whereas for the latter, full-time work experience and high education are the main variables contributing to this gap. This suggests the existence of labor market barriers either through discrimination or other unobserved factors for refugees with respect to wages, especially for males.