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?

1 Introduction.- 1.1 Background.- 1.2 Overview of Chapters.- 2 Economic Framework.- 2.1 Industry Wage Differentials.- 2.2 A Sensible German Industry Classification.- 2.3 Empirical Evidence: Industry Differentials.- 2.4 The German Migration Experience.- 2.5 Measuring Migration Wage Effects.- 2.6 Empirical Evidence: Migration & Wages.- 3 Econometric Theory.- 3.1 Measuring Inter-Industry Differentials.- 3.2 True Panel Data Models.- 3.3 Pseudo Panel Estimation for Cross-Sections.- 4 Application to Germany.- 4.1 Introduction.- 4.2 West-German Micro-Data.- 4.3 West German Macro Data.- 4.4 Wage Effects of Migration.- 4.5 Differentials and Intertemporal Changes.- 4.6 Industry Differentials: Panel and Pooled.- 5 Conclusions.- A GSOEP (1984-1992).- B ALLBUS (1980-1992).- References.- Author Index.- List of Figures.- List of Tables.- Glossary of Acronymns.