The Immigrant Wage Gap in Germany: Are East Europeans Worse Off?



Using employment register data, this study compares the outcomes of male foreign workers from different East and West European countries who entered the German labor market between 1995 and 2000 with those of male German workers. Although the wage differentials are highest for Poles, results from Oaxaca/Blinder type decompositions show that the East Europeans are not generally worse off. Actually, we find considerable heterogeneity also within nationality groups. Quantile decompositions show that coefficients effects tend to be larger at the bottom of the wage distribution and, by that, give evidence for sticky floors.