The research examining the pay gap between immigrants to Germany and their non-immigrant counterparts was already published a year ago, but has gained fresh traction in recent days with new data points being added to it.

The study in the journal Nature examines the financial situation of immigrants in Germany (as well as eight other countries from around the globe), discovering that, on average, first-generation foreign workers tend to earn almost 20 percent less than non-immigrants. 

Even among the second generation of immigrants, that pay gap still stood at 7.7 percent; the study however highlights that this is a significant improvement, stating that "(t)his assimilation process is often attributed to the acquisition of native-level language proficiency and other country-specific skills, completion of domestic education, and improved access to networks, factors that together increase productivity and reduce barriers to accessing higher-paying jobs."

According to the research, descendants of people from the African continent and the Middle East were particularly affected by this pay gap phenomenon. 

The German migration news service Mediendienst Integration says that this disparity is proof that many immigrants face discrimination in the labor market. 

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Report finds wage gap widespread and systemic

The study highlights various reasons for this "wage gap" between immigrants and their non-immigrant counterparts: 

The research by Nature says that three-quarters of this wage gap can be attributed to the fact that many immigrants are less likely to work in high-paying industries or end up in higher positions.

Furthermore, about one-quarter of that difference appears to stem from immigrant workers suffering a more direct sense of discrimination by certain companies and employers paying them less than non-immigrants in similar positions.

"Although within-job pay inequality remains notable for immigrants in several countries, our results demonstrate that unequal access to higher-paying jobs is the primary driver of the immigrant–native pay gap across a range of institutionally and demographically diverse contexts," the study explains.

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Women particularly affected by wage differences

The research further highlights that foreign women earn significantly less on average than their German counterparts: Using data from 2023, the study says that non-immigrant women on average earn 3,900 euros in full-time jobs (pre-tax), while foreign women earned 1,000 euros less, with a gross income of 2,900 euros.

Prior to this study, it was assumed that this pay gap between immigrant and non-immigrant women stood at only 17.6 percent. However, the latest study shows that the income of women with an immigrant background might fall up to 41 percent short compared to non-immigrants per hour, and up to 68 percent when compared to their non-immigrant male counterparts.

The study also highlights that this financial disparity particularly affects immigrant women from eastern Europe as well as women coming to Germany as asylum seekers.

Finally, the research highlights the fact that many immigrant women will take on unpaid work in their family households, resulting in them becoming more likely to work only part-time outside the home.

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Issue of foreign qualifications

Many job choices among foreign workers are still focused on more menial tasks: the research shows that immigrants are more likely to work in occupations like cleaning and caregiving, which pay lower wages — even though some of them (like caregiving) might be in high demand.

Foreign women again seem to be particularly affected, often working in support roles and positions for which they are actually overqualified, the study says.

Furthermore, foreign degrees often are still not fully recognized in Germany as equivalent qualifications, or have to be converted using various testing and training procedures which many new arrivals to Germany cannot immediately pass — especially not before improving their German language skills. 

Until such a time arrives when they can speak a sufficient level of German, many foreigners will work for less pay, Mediendienst Integration underlines.