A Relational Inequality Approach to First- and Second-Generation Immigrant Earnings in German Workplaces.

We conceptualize immigrant incorporation as a categorically driven process and contrast the bright distinctions between first-generation immigrants and natives, with more blurry second-generation contrasts. We analyze linked employer-employee data of a sample of 5,097 employees in 97 large German organizations and focus on first- and second-generation immigrants. We explore how generational status in the labor market and workplace contexts expands and contracts native-immigrant wage inequalities. We find a substantial average first-generation immigrant-native wage gap, which is not explained by individual human capital differences or most aspects of organizational context. In contrast, there is, on average, no second-generation wage gap, but there are substantial variations across workplaces. A series of results confirm predictions from relational inequality theory. For both first- and second-generation immigrants, working in a high-inequality workplace is associated with larger wage gaps. Second-generation immigrants perform better in workplaces where they have intersectional advantages over natives, and for first-generation immigrants collective bargaining protection narrows wage gaps with natives. Consistent with ethnic competition theory, in workplaces with very high shares of immigrant workers, the first-generation–native wage gap is larger. In contrast, increased contact between native Germans and second-generation immigrant coworkers reduces earnings gaps, but only up to a tipping point, after which competition processes reappear and earning gaps widen. [ABSTRACT FROM AUTHOR]

Copyright of Social Forces is the property of Oxford University Press / USA and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)