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

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IZA Seminar

Place: Schaumburg-Lippe-Str. 9, 53113 Bonn

Date: 11.03.2014, 12:00 - 13:30

   

Presentation by 

Christina Gathmann (LISER)
   

Abstract:

In many countries, immigrants have lower employment rates and lower earnings than natives. We study 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 eligibility rules between adolescent and
adult immigrants. Between 1990 and 1999, adolescents could obtain German citizenship
after eight years, while adults needed 15 years of residency in Germany. Since 2000, all
immigrants face an 8 years residency requirement. OLS estimates show a strong 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 seems to carry some benefits but is not by itself enough to obtain full economic and
social integration of immigrants.

   
   
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