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The performance of migrants in occupational labour markets: evidence from 'Aussiedler' in Germany
(2002)
Since the breakdown of communism, Germany has experienced a major influx of Aussiedler who are basically migrants originating from Eastern European countries. In this article, we use data from the German Socio-Economic Panel of the year 1998 to analyse the labour market performance of this group of migrants. Our key hypothesis guiding the empirical investigations is that in occupational labour markets, such as the German one, migrants are faced with specific problems when transferring their educational and vocational skills acquired in other countries. Only if they gain access to their trained occupations are they able to perform well in the labour market. Otherwise, occupational closure hinders them from receiving returns to their educational and vocational qualifications.
In contrast to West Germany, where marriage and childbirth have been strongly coupled, the German Democratic Republic (GDR) displayed high rates of non-marital childbearing. Researchers attributed this pattern to “misguided” GDR family policies that encouraged women to remain unmarried after childbirth. With German unification, East Germany’s legal and political institutions — including family policies — were replaced by those of West Germany. Against this background, it was widely expected that east German non-marital birth rates would soon fall to west German levels. After unification, however, they increased even further.
This article argues that the enormous east-west differences in non-marital childbearing in the 1990s can be attributed to differences in women’s work orientation. Despite unfavourable labour market constraints and social policies that encourage women’s withdrawal from the labour force after childbirth, east German women, compared with their west German counterparts, are still more likely to be in full-time employment, and to re-enter the labour force sooner after childbirth. Our empirical investigation, drawing on data from the German 1997 micro-census, reveals a strong effect of women’s education and employment on marriage in west Germany, whereas in east Germany the probability of living in a marital union is hardly correlated at all with women’s employment characteristics. We conclude that a generally strong female work orientation and the wide availability of public day care facilities are the most important factors weakening the economic incentives for east German women to get married at childbirth.