Successful due to STEM? Labour market returns to STEM qualifications among skilled immigrants in Germany

ABSTRACT

Against the growing demand for the STEM labour force, the study examines labour market returns to STEM qualifications among immigrants who arrived in Germany since the 1980s. Analysing the German microcensus data for years 2015 and 2016, we demonstrate that skilled immigrants with STEM qualifications largely attain better labour market outcomes in Germany compared to immigrants without STEM qualifications, thus narrowing the gap to their native-born counterparts. Male immigrants succeed in utilizing their STEM capital better than female immigrants, but all immigrants face difficulties in translating their STEM qualifications into STEM employment. Our analyses further focus on returns to various STEM qualifications, attesting that medical qualifications are especially beneficial for Germany’s female immigrants. The analysis of heterogeneous effects of STEM qualifications across major migrant groups reveals that Eastern European male immigrants make the best of their STEM qualifications, whereas among women, STEM qualified from Turkey or MENA countries are the most successful. These and other findings are discussed both from the supply and demand sides of the labour market.

KEYWORDS:

• STEM qualification
• immigrants
• labour market
• Germany

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 The microcensus data available as Scientific Use Files can be ordered by scholars from the research data centers of the Federal Statistical Office and Statistical Offices of the Federal States for a provision fee. It should be noted that Scientific Use Files can only be ordered by independent Germany-based research institutions. Researchers abroad have the possibility to work with the data at the research data centers of the Federal Statistical Office and Statistical Offices of the Federal States after fulfilling a number of obligatory conditions, including commitment to strict data protection rules. The microcensus data usage is limited to the designated scholars and specified projects. For more information, see: https://www.forschungsdatenzentrum.de/en/terms-use.

2 The microcensus data for year 2011 cannot be used for the current analyses as they contain a somewhat less detailed classification of occupations (3-digit ISCO number instead of 4-digit ISCO number). This would not allow researchers to unambiguously separate nursing and medical services (which are officially not considered STEM fields/occupations) from other medical professions, like human medicine (which are officially considered STEM fields/occupations). The 2007 microcensus data could not be used either, as they do not allow singling out Germans without migration background.

Additional information

Funding

The study was supported by a research grant awarded by the Fritz Thyssen Foundation, Germany, to Irena Kogan for the project “Upwardly Mobile Through STEM? STEM Competences, Participation and Returns Among Ethnic Minority Women and Men in Germany (STEMobile)”, Award number: 10.20.2.001SO.

Notes on contributors

Irena Kogan

Irena Kogan holds a chair in comparative sociology at the University of Mannheim. Her research interests include ethnicity and migration, integration of immigrants, ethnic and social stratification. She is the author of a number of articles in international journals dealing with these topics.

Jule Schabinger

Jule Schabinger is a PhD student at the University of Mannheim and is working as a research associate at the Mannheim Centre for European Social Research (MZES). Her research interests are mainly in the field of migration and integration and social inequality.