Research discloses consistent wage disparity among immigrants in key economic powerhouses
In Germany, a significant income gap exists between immigrants and native-born citizens, with the main cause being limited access to better-paid industries, occupations, and companies [1][2][3]. This wage gap is also present among the second generation of immigrants, averaging 7.7%, which is higher than the international average of 5.7% [1][2][3].
The wage gap for first-generation migrants in Germany stands at 19.6%, a figure that is above average compared to other countries like Canada (1.9%), Denmark (9.2%), Spain (not specified), Sweden (7%), France (18.9%), the Netherlands (15.4%), the United States (10.6%), Norway (20.3%), and the United States (not specified) [3].
The wage gap among immigrants in Germany is influenced by a combination of structural barriers and economic factors. Integration challenges, such as language barriers, recognition of foreign qualifications, limited professional networks, and inadequate information transfer, hinder immigrants' access to well-paid jobs [3].
Countries like Canada and Sweden are closing the wage gap more rapidly than Germany, especially among second-generation immigrants. The wage gap in Canada, for example, is only 1.9% for second-generation immigrants [3][4].
The economic environment and policies in different countries also play a role. For instance, the United States has a smaller wage gap for first-generation migrants (10.6%), while Spain has one of the largest gaps (29.3%) [3].
The study, commissioned by the journal Nature and conducted with the participation of researchers from the Nuremberg Institute for Employment Research (IAB), suggests that integration is primarily about breaking down structural barriers to access well-paid jobs [5].
Language support, recognition of foreign qualifications, expansion of professional networks, and better information transfer are important for breaking down these barriers. The study did not specify the specific countries where the second generation of immigrants is closing the wage gap more quickly than Germany, but it was mentioned that several other countries are doing so more quickly [5].
The study, which analysed data from 13.5 million immigrants and native workers in nine countries, did not specify the specific countries where the second generation of immigrants is closing the wage gap more quickly than Germany [5]. However, it is clear that Germany faces challenges in reducing the income disparities among its immigrant population, particularly for descendants of migrants from Africa and the Middle East.
References: [1] https://www.tagesschau.de/wirtschaft/migrantenlohnungleichheit-101.html [2] https://www.heise.de/newsticker/meldung/Migranten-in-Deutschland-bleiben-im-Einkommen-hinterher-4984498.html [3] https://www.nature.com/articles/s41562-020-0929-z [4] https://www.dw.com/en/germany-faces-challenge-in-closing-immigrant-wage-gap/a-54216695 [5] https://www.iab.de/DE/Presse/Pressemitteilungen/2021/2021-04-28_Migrantenlohnungleichheit.html
In light of the challenges faced by immigrants in Germany, it would be beneficial for them to seek opportunities in areas like finance and business in the Middle East, where, for instance, countries such as Canada and Sweden have shown significant progress in closing the wage gap among immigrants, especially the second generation. This approach could help immigrants from Africa and the Middle East, who face particular income disparities in Germany, overcome structural barriers and access well-paid jobs.
