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Returns to Citizenship?: Evidence from Germany's Recent Immigration Reforms

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  • Christina Gathmann
  • Nicolas Keller
Abstract
Immigrants in many countries have lower employment rates and earnings than natives. We study whether the option to naturalize improves immigrant assimilation. The empirical analysis relies on two major immigration reforms in Germany, acountry with a weak record of immigrant integration. Using discontinuities in the reforms' eligibility rules, we find few returns of citizenship for men, but substantial returns for women. Returns are also larger for more recent immigrants, but essentially zero for traditional guest workers. For immigrant women, access to citizenship accounts for 70% of the assimilation rate, i.e. the wage return of an additional year in Germany.

Suggested Citation

  • Christina Gathmann & Nicolas Keller, 2014. "Returns to Citizenship?: Evidence from Germany's Recent Immigration Reforms," SOEPpapers on Multidisciplinary Panel Data Research 656, DIW Berlin, The German Socio-Economic Panel (SOEP).
  • Handle: RePEc:diw:diwsop:diw_sp656
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    Cited by:

    1. Davide Azzolini & Raffaele Guetto, 2017. "The impact of citizenship on intermarriage: Quasi-experimental evidence from two European Union Eastern enlargements," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 36(43), pages 1299-1336, April.
    2. Hangartner, Dominik & Sarvimäki, Matti & Spirig, Judith, 2021. "Managing Refugee Protection Crises: Policy Lessons from Economics and Political Science," IZA Discussion Papers 14821, Institute of Labor Economics (IZA).
    3. Ivana Fellini & Raffaele Guetto, 2019. "Legal Status and Immigrants’ Labour Market Outcomes: Comparative Evidence from a Quasi-Experiment in Western and Southern Europe," Econometrics Working Papers Archive 2019_11, Universita' degli Studi di Firenze, Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti".
    4. Robert C. M. Beyer, 2017. "The Performance of Immigrants in the German Labor Market," SOEPpapers on Multidisciplinary Panel Data Research 892, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Peter Huber & Marian Fink & Thomas Horvath, 2020. "Data Sources on Migrants' Labour Market and Education Integration in Austria," WIFO Working Papers 613, WIFO.
    6. Giulia Bettin & Riccardo Lucchetti, 2016. "Steady streams and sudden bursts: persistence patterns in remittance decisions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 263-292, January.
    7. Kathryn H. Anderson & Zhen Huang, 2019. "Can immigrants ever earn as much as native workers?," IZA World of Labor, Institute of Labor Economics (IZA), pages 159-159, April.
    8. Friedericke von Haaren-Giebel, 2016. "Naturalisation and Investments in Children's Human Capital: Evidence from a Natural Experiment," SOEPpapers on Multidisciplinary Panel Data Research 854, DIW Berlin, The German Socio-Economic Panel (SOEP).
    9. Saurer, Judith & Felfe, Christina, 2014. "Granting Birthright Citizenship - A Door Opener for Immigrant Children's Educational Participation and Success?," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100548, Verein für Socialpolitik / German Economic Association.
    10. Britta Rude, 2023. "Ending Statelessness for Displaced Children: Impact on Early Childhood Education," ifo Working Paper Series 401, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    11. von Haaren-Giebel, Friederike, 2016. "Naturalisation and Investments in Children's Human Capital: Evidence from a Natural Experiment," Hannover Economic Papers (HEP) dp-576, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    12. Christina Felfe & Helmut Rainer & Judith Saurer, 2016. "Why Birthright Citizenship Matters for Immigrant Children: Impacts on Parental Educational Choice," CESifo Working Paper Series 6037, CESifo.
    13. Eric Schuss, 2017. "Substantial Labor Market Effects of the Residency Status: How Important Are Initial Conditions at Arrival for Immigrants?," SOEPpapers on Multidisciplinary Panel Data Research 952, DIW Berlin, The German Socio-Economic Panel (SOEP).
    14. Christina Gathmann & Ole Monscheuer, 2020. "Naturalization and citizenship: Who benefits?," IZA World of Labor, Institute of Labor Economics (IZA), pages 125-125, April.
    15. Vahan Sargsyan, 2018. "Social Integration of Immigrants and the Attitude of the Native Population in European Countries," CERGE-EI Working Papers wp629, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    16. Tommaso Frattini, 2017. "Integration of immigrants in host countries - what we know and what works," Development Working Papers 427, Centro Studi Luca d'Agliano, University of Milano.
    17. Okoampah, Sarah, 2016. "Estimating earnings assimilation of immigrants to Germany: Evidence from a double cohort model," Ruhr Economic Papers 630, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    18. Peter Huber, 2015. "What Institutions Help Immigrants Integrate? WWWforEurope Working Paper No. 77," WIFO Studies, WIFO, number 57884.
    19. Luca Pieroni & Melcior Rosselló Roig & Luca Salmasi & Gilberto Turati, 2023. "Legal status and voluntary abortions by immigrants," DISCE - Working Papers del Dipartimento di Economia e Finanza def126, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    20. Friederike von Haaren-Giebel & Malte Sandner, 2016. "Naturalisation and on-the-job training: evidence from first-generation immigrants in Germany," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-28, December.

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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • K37 - Law and Economics - - Other Substantive Areas of Law - - - Immigration Law

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