Migrant pay gap persists across generations in Germany
24. Juli 2025

Migrants in Germany continue to earn significantly less than native-born workers—even into the second generation. That’s the key finding from a new international study published in the journal Nature, conducted with the participation of Germany’s Institute for Employment Research IAB in Nuremberg.

Structural Barriers Limit Access to High-Paying Jobs

According to the data, first-generation migrants in Germany earn on average 19.6% less than their native-born peers. However, the gap is not primarily due to unequal pay for equal work. Researchers say the disparity is largely structural: migrants are often excluded from access to higher-paying sectors, professions, and companies. This limited access accounts for nearly three-quarters of the income gap.

The study analyzed employment data from 13.5 million workers across nine countries: Germany, Canada, Denmark, France, the Netherlands, Norway, Spain, Sweden, and the United States. Germany ranked near the top in terms of persistent income inequality, behind only Spain (29.3%), Canada (27.5%), and Norway (20.3%).

Second-Generation Gap Still Significant

In the second generation, the wage gap narrows—but doesn’t disappear. In Germany, the children of migrants still earn on average 7.7% less than those without a migration background. This gap is especially pronounced among people with roots in Africa and the Middle East.

By comparison, other countries show more progress in closing the wage gap. In Sweden, the second-generation pay gap stands at 3.1%; in Denmark, 4.6%; and in Canada, just 1.9%. The average across all nine countries is 5.7%, putting Germany above the international norm.

Researchers Call for Systemic Reform

The authors argue that achieving income equality is about more than fair wages—it requires dismantling systemic barriers to economic opportunity. Malte Reichelt of the IAB emphasized the need for improved language training, better recognition of foreign qualifications, stronger professional networks, and clearer communication of opportunities. zdfheute.de

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