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Cultural differences and immigrants' wages
Raux, Morgan


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DP2021-02 Cultural differences and immigrants' wages.pdf
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Keywords :
Cultural distance; Immigrant Workers
Abstract :
[en] In this paper, I investigate how cultural differences affect the labor-market performance of immigrant workers in Germany. I document a negative relationship between hourly wages and the cultural distance between immigrants' countries of origin and Germany. This result is robust across the three main indicators used in the gravity literature: linguistic, religious, and genetic distances. This cultural wage penalty disappears after five to ten years spent in Germany. Controlling for language proficiency as well as for selective in- and out-migration, these results highlight the cultural integration of immigrant workers. I finally provide evidence suggesting that lower wage progression may be explained by fewer job-to-job transitions.
Disciplines :
Special economic topics (health, labor, transportation...)
Author, co-author :
Raux, Morgan ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Department of Economics and Management (DEM)
Language :
Title :
Cultural differences and immigrants' wages
Publication date :
27 January 2021
Version :
Discussion Paper 2021-02
Focus Area :
Migration and Inclusive Societies
Available on ORBilu :
since 27 January 2021


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