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Study reveals persistent pay gap for immigrants in major economies

by Deutsche Presse-Agentur - dpa

NUREMBERG Jul 17, 2025 - 6:03 pm GMT+3
Construction staff work at a construction site in Munich, Germany, July 1, 2025. (Reuters Photo)
Construction staff work at a construction site in Munich, Germany, July 1, 2025. (Reuters Photo)
by Deutsche Presse-Agentur - dpa Jul 17, 2025 6:03 pm

Immigrants in Germany, the United States, France and six other countries earn significantly less on average than native-born citizens, research published on Thursday showed.

Other countries include Canada, Denmark, the Netherlands, Norway, Spain and Sweden, according to an international study commissioned by the journal Nature and conducted with the participation of researchers from the Nuremberg Institute for Employment Research (IAB).

Several of the other countries are closing the wage gap in the second generation of immigrants more quickly than Germany.

In Germany, the income gap for the first generation is 19.6%. The main reason for the deficit is not unequal pay for the same work, but rather limited access to better-paid industries, occupations and companies.

Data from 13.5 million immigrants and native workers in nine countries was analyzed for the study.

"Integration is primarily about breaking down structural barriers to access well-paid jobs," said Malte Reichelt, co-author of the study, from the IAB.

Language support, recognition of foreign qualifications, expansion of professional networks and better information transfer are important for breaking down structural barriers.

In Germany, there is still a wage gap among second-generation immigrants, averaging 7.7%. Descendants of immigrants from Africa and the Middle East, in particular, continue to be disadvantaged.

An international comparison reveals varying degrees of disparity.

The largest wage gaps among the first generation were found in Spain (29.3%) and Canada (27.5%), followed by Norway (20.3%), Germany (19.6%), France (18.9%) and the Netherlands (15.4%).

The differences were significantly smaller in the U.S. (10.6%), Denmark (9.2%) and Sweden (7%).

Income differences are also evident among the second generation, with the wage gap averaging 5.7%, meaning Germany is above average in this respect.

The wage gap is widest among second-generation immigrants in Norway, at 8.7%, and narrowest in Canada, at 1.9%.

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  • Last Update: Jul 17, 2025 7:11 pm
    KEYWORDS
    immigration immigrants germany united states europe labor wage workforce
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