"(...) In this paper we study the occupational progress and earnings attainment of immigrants in Germany
over time and compare them to native Germans. Our analysis is guided by the human capital and segmented
labor market theories. To assess the separate effects of occupational segmentation and discrimination in the
allocation of occupations and wages we conceptualize the process of earnings attainment as occurring in three
stages: initial occupational achievement, final occupational achievement after the accumulation of
experience, and contingent on the former, final earnings attainment. Using data from the German
Socioeconomic Panel, our results indicate a high degree of initial occupational segmentation, with immigrants
being less able to translate their human capital into a good first job and being channeled into first occupations
of significantly lower status than natives. We also developed evidence to suggest that immigrants experienced
significant discrimination in the process of occupational attainment, yielding little job mobility over time,
and widening the status gap between Germans and guestworkers. Holding occupational status constant,
however, we found less evidence of direct discrimination in the process of earnings attainment. (...)" |