Migration and the Inter-Industry Wage Structure in Germany

1 Introduction.- 1.1 Background.- 1.2 Overview of Chapters.- 2 Economic Framework.- 2.1 Industry Wage Differentials.- 2.1.1 Efficiency Wages.- 2.1.2 Unobserved Ability.- 2.1.3 Firm Size and Other Motivations.- 2.1.4 Minorities, Crowding & Migration.- 2.2 A Sensible German Industry Classification.- 2.3 Empirical Evidence: Industry Differentials.- 2.3.1 Laying the Foundation.- 2.3.2 The German Response.- 2.3.3 Germany Reconsidered (1980–1990).- 2.4 The German Migration Experience.- 2.4.1 Historical Background (1950–1992).- 2.4.2 The Industry Foreigner Structure in Germany.- 2.4.3 Foreigner Heterogeneity.- 2.5 Measuring Migration Wage Effects.- 2.5.1 Foreigners as Bundles of Human Capital.- 2.5.2 Foreigners as Explicit Factors of Production.- 2.6 Empirical Evidence: Migration & Wages.- 2 6 1 U.S. Evidence.- 2.6.2 German Evidence.- 3 Econometric Theory.- 3.1 Measuring Inter-Industry Differentials.- 3.1.1 Reference Industry Analysis.- 3.1.2 Deviations from the Weighted Average.- 3.1.3 Deviations Revisited.- 3.1.4 Overall Standard Deviation of Industry Variation.- 3.2 True Panel Data Models.- 3.2.1 Random Effects Model.- 3.2.2 Fixed Effects Model (LSDV).- 3.3 Pseudo Panel Estimation for Cross-Sections.- 3.3.1 Areas of Application.- 3.3.2 Cohort Grouping and Sample Size.- 3.3.3 Pseudo Panel Basics.- 3.3.4 Deaton’s “Within” Estimator ß.- 3.3.5 Deaton’s “Errors-in-Variables” Estimator ß.- 3.3.6 “Within” or LSDV?.- 3.3.7 Verbeek and Nijman’s “MSE” Estimator ?(a).- 3.3.8 Previous Applied Pseudo Panel Studies.- 4 Application to Germany.- 4.1 Introduction.- 4.2 West-German Micro-Data.- 4.2.1 DIW’s GSOEP Panel Data (1984–1992).- 4.2.2 ZA’s ALLBUS RCS Data (1980–1992).- 4.2.3 Computer Issues.- 4.3 West German Macro Data.- 4.3.1 Industry Affiliation.- 4.3.2 Foreigner Industry Employment Share.- 4.3.3 Foreigners and Average Education.- 4.3.4 Value Added by Industry.- 4.4 Wage Effects of Migration.- 4.4.1 Models and Data.- 4.4.2 Interpretation of Migration Impacts.- 4.4.3 Overall Foreigner Wage Effects.- 4.4.4 Foreigner Effects by Nationality.- 4.5 Differentials and Intertemporal Changes.- 4.6 Industry Differentials: Panel and Pooled.- 4.6.1 Background.- 4.6.2 Human Capital Explanations.- 4.6.3 Job Status and Experience.- 4.6.4 Migration Impacts on Industry Wage Structure.- 4.6.5 Comparing True Panel, Pseudo Panel, &, Pooling.- 5 Conclusions.- A GSOEP (1984–1992).- B ALLBUS (1980–1992).- References.- Author Index.- List of Figures.- List of Tables.- Glossary of Acronymns.