Menu
Search
Migrants in the low-wage sector ,
The situation of migrants working in the low-wage sector is presented in the Working Paper 39. The analysis includes both foreign nationals and people with an immigrant background, e.g. repatriates resp. late repatriates ("Aussiedler" resp. "Spätaussiedler") and children of immigrants. In addition, labour market aspects concerning persons with a right to stay are examined. People with a right to stay are migrants with temporary suspension of deportation and those who are covered by the backlog regulation. The data for this study were taken from the "Panel Study Labour market and social security" (PASS) which is based on a household survey that takes place every year.
Main Findings
- The low-wage rate of the foreign nationals (35 percent) is significantly higher than the corresponding rate of the Germans (17 percent). The low-wage rate of immigrants in the first generation (35 percent) is - compared to persons without an immigrant back-ground (16 percent) - on a clearly higher level as well.
- The vast majority of the persons who are employed in the low-wage sector hold the German citizenship (85 percent) or do not have an immigrant background.
- On the one hand, the higher rate of low-wage employed foreigners and other persons with an immigrant background is based on the lower reservation wage (i.e. the wage for work at which an employee is willing to offer their services). On the other hand, the rate of persons without professional qualification is significantly higher than the rate of Germans employed in the low-wage sector and the employees without an immigrant background.
- Both foreign low-wage employees and other low-wage employees with an immigrant background rarely work in qualified jobs. They focus on few professions and they are disproportionately often employed in medium-sized and large companies.
- Due to their low reservation wage combined with a low social coverage, the low-wage sector is the main field for migrants with temporary suspension of deportation to take up employment and therefore obtain the permanent residence status in Germany. Nevertheless, the rate of employed people among the migrants with temporary suspension of deportation who are fit for gainful employment is only about 11 percent.
- The majority of those covered by the backlog regulation are of working age. However, due to missing data, it is not possible to make a statement about their occupation, or their choice of profession and industry.
- The decreasing wages in the low-wage sector result from growing globalization and technical progress. Thus, theobserved groups are most badly affected by the shift of demand for qualified labour.
The right solution for a better workplace integration will be to further support their professional training. Hereby, the given potential of labour force will be tapped more efficiently - also against the background of the demographic change - and social security expenses will be reduced.
Author of the study: Waldemar Lukas
This publication is only available in German language.