1 Introduction.- 1.1 Background.- 1.2 Overview of Chapters.- 2 Economic Framework.- 2.1 Industry Wage Differentials.- 2.1.1 Efficiency Wages.- 2.1.2 Unobserved Ability.- 2.1.3 Firm Size and Other Motivations.- 2.1.4 Minorities, Crowding & Migration.- 2.2 A Sensible German Industry Classification.- 2.3 Empirical Evidence: Industry Differentials.- 2.3.1 Laying the Foundation.- 2.3.2 The German Response.- 2.3.3 Germany Reconsidered (1980-1990).- 2.4 The German Migration Experience.- 2.4.1 Historical Background (1950-1992).- 2.4.2 The Industry Foreigner Structure in Germany.- 2.4.3 Foreigner Heterogeneity.- 2.5 Measuring Migration Wage Effects.- 2.5.1 Foreigners as Bundles of Human Capital.- 2.5.2 Foreigners as Explicit Factors of Production.- 2.6 Empirical Evidence: Migration & Wages.- 2 6 1 U.S. Evidence.- 2.6.2 German Evidence.- 3 Econometric Theory.- 3.1 Measuring Inter-Industry Differentials.- 3.1.1 Reference Industry Analysis.- 3.1.2 Deviations from the Weighted Average.- 3.1.3 Deviations Revisited.- 3.1.4 Overall Standard Deviation of Industry Variation.- 3.2 True Panel Data Models.- 3.2.1 Random Effects Model.- 3.2.2 Fixed Effects Model (LSDV).- 3.3 Pseudo Panel Estimation for Cross-Sections.- 3.3.1 Areas of Application.- 3.3.2 Cohort Grouping and Sample Size.- 3.3.3 Pseudo Panel Basics.- 3.3.4 Deaton's "Within" Estimator ß.- 3.3.5 Deaton's "Errors-in-Variables" Estimator ß.- 3.3.6 "Within" or LSDV?.- 3.3.7 Verbeek and Nijman's "MSE" Estimator ?(a).- 3.3.8 Previous Applied Pseudo Panel Studies.- 4 Application to Germany.- 4.1 Introduction.- 4.2 West-German Micro-Data.- 4.2.1 DIW's GSOEP Panel Data (1984-1992).- 4.2.2 ZA's ALLBUS RCS Data (1980-1992).- 4.2.3 Computer Issues.- 4.3 West German Macro Data.- 4.3.1 Industry Affiliation.- 4.3.2 Foreigner Industry Employment Share.- 4.3.3 Foreigners and Average Education.- 4.3.4 Value Added by Industry.- 4.4 Wage Effects of Migration.- 4.4.1 Models and Data.- 4.4.2 Interpretation of Migration Impacts.- 4.4.3 Overall Foreigner Wage Effects.- 4.4.4 Foreigner Effects by Nationality.- 4.5 Differentials and Intertemporal Changes.- 4.6 Industry Differentials: Panel and Pooled.- 4.6.1 Background.- 4.6.2 Human Capital Explanations.- 4.6.3 Job Status and Experience.- 4.6.4 Migration Impacts on Industry Wage Structure.- 4.6.5 Comparing True Panel, Pseudo Panel, &, Pooling.- 5 Conclusions.- A GSOEP (1984-1992).- B ALLBUS (1980-1992).- References.- Author Index.- List of Figures.- List of Tables.- Glossary of Acronymns.

Although the issue of migration has received substantial attention in public debate in most countries of the West, only moderately satisfactory attention has been given in the economic literature. This book analyses the case of Germany from an economic point of view. It examines questions such as: Are there substantial negative side-effects of migration, faced by native workers, as sometimes publicly claimed? Do highly skilled and unskilled natives experience different effects? Do certain foreigner national groups affect natives differently? How important is the level of education of these incoming foreigners in determining wage impacts on natives? Do native workers in some industries profit from migration, while others suffer? How is the industrial wage structure affected by migration, if at all?