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

Arbeitspapier

Immigrants in many countries have lower employment rates and lower earnings than natives. In this paper, we ask whether a more liberal access to citizenship can improve the economic integration of immigrants. Our analysis relies on two major immigration reforms in Germany, a country with a relatively weak record of immigrant assimilation. For identification, we exploit discontinuities in the reforms' eligibility rules. Between 1991 and 1999, adolescents could obtain citizenship after eight years of residency in Germany, while adults faced a 15-year residency requirement. Since 2000, all immigrants face an 8-year residency requirement. OLS estimates show a positive correlation between naturalization and labor market performance. Based on the 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. Overall, liberalization of citizenship provides some benefits in the labor market but is unlikely to result in full economic and social integration of immigrants in the host country.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 8064

Classification and Topics

• Classification: Wirtschaft ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Wage Level and Structure; Wage Differentials ; Geographic Labor Mobility; Immigrant Workers ; Immigration Law
• Subject: citizenship ; assimilation ; language ; welfare ; Germany

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gathmann, Christina ; Keller, Nicolas
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/96691
• Last update: 10.03.2025, 11:41 AM CET