Immigrant Wages in Germany Differently Affect the Following Generations, According to Research Findings
In a recent study published in Nature, researchers analysed employment and wage data from 13.5 million workers in nine high-income countries, including Germany and Canada. The study sheds light on the persistent wage gap faced by second-generation immigrants in Germany and the potential solutions that Canada has implemented to address this issue.
In Canada, targeted support programs and effective policies have significantly reduced the wage gap for second-generation immigrants compared to Germany. One of the key initiatives in Canada is the Economic Integration Services, which includes job-specific and general language training, helping newcomers to quickly apply their skills and fill critical labour gaps.
The Canadian government has also increased its minimum wage to $17.75 as of April 2025, benefiting low-income workers, including immigrants, by raising hourly income and reducing poverty rates. Moreover, funding is provided to help newcomers obtain necessary licenses or certifications for regulated professions, facilitating their entry into well-paying jobs.
The Canadian approach focuses on early integration and support for education and job skills, which can help bridge the gap by providing better job opportunities and increasing earning potential. However, a direct comparison with Germany's effectiveness requires additional data and studies.
In Germany, the wage gap narrows into the second generation but still persists, with second-generation immigrants earning 7.7 percent less than their peers with native-born parents. The structural barriers to access to well-paid jobs for immigrants in Germany, as noted by Dr. Malte Reichelt, can include non-recognition of foreign credentials, language barriers, and a lack of professional networks for foreigners.
The study challenges assumptions that simply prohibiting wage discrimination will solve the problem of income disparities affecting immigrants in Germany. Instead, it suggests that beyond fairness, the findings have major implications for economic growth, especially given Germany's reliance on skilled immigration in an aging society.
The study points to Canada as an example of a country where targeted support programs and the effective use of policy tools have resulted in a much smaller second-generation wage gap. In Canada, the second-generation wage gap among immigrants is the smallest observed in the comparison countries, at 1.9 percent.
The authors of the study attribute the dramatic narrowing in Canada's wage gap to strong integration policies, effective recognition of foreign qualifications, robust language support, and active measures to connect immigrants and their children to well-paid work. Canada's first-generation wage gap is among the largest, at 27.5 percent.
In conclusion, while both Canada and Germany have implemented policies to support immigrant integration, Canada's approach appears to be more effective in reducing wage disparities for second-generation immigrants. The study suggests that Germany can learn from Canada's approach to reducing the wage gap for immigrants and their descendants.
Science reveals that second-generation immigrants in Canada face a smaller wage gap compared to Germany due to targeted support programs and effective policies in the realm of workplace-wellness and education-and-self-development. Canada's initiatives include Economic Integration Services, a program providing job-specific and general language training, and increasing the minimum wage, which benefits low-income workers, including immigrants, and reduces poverty rates. In contrast, Germany's wage gap among second-generation immigrants still persists, with minorities earning 7.7 percent less than their peers with native-born parents. The study emphasizes that beyond fairness, the findings have significant implications for economic growth in Germany, which relies on skilled immigration in an aging society. Therefore, Germany can learn from Canada's approach to minimize the wage gap for immigrants and their descendants, focusing on strong integration policies, effective recognition of foreign qualifications, robust language support, and active measures to connect immigrants and their children to well-paid work.
