Wages of Skilled Migrant and Native Employees in Germany: New Light on an Old Issue

The German Council of Economic Experts (GCEE) argues for a labor market-driven immigration of skilled migrants into Germany to overcome a decline in workforce due to demographic ageing. We pick up this current debate on skilled immigration by analyzing the migrant-native wage differential for skilled workers in Germany and consider various information on firms. Our results indicate that the wage gap is mainly explained by observable characteristics, especially labor market experience and firm characteristics. However, we find lower rewards for migrants’ labor market experience than for natives (flatter experience curves). Our results show that these differences in experience curves become negligible in the long run. Moreover, we reveal firms’ wage-setting policies: Firms evaluate a worker's education independent of migration backgrounds, as migrants possess the same productivity levels as their German counterparts in the same occupations and task levels. Due to Germany's heterogeneous immigration structure, we are able to compare the results for different migrant subgroups and, thus, derive valuable insights into the migrant-native wage structure with a wide reach beyond Germany. This article adds to current debates in various industrialized countries with demographic ageing patterns, as it focuses on an important group for domestic labor markets: skilled immigrants.

Dynamic Electricity Intensity Trends in 91 Countries

Despite numerous studies on energy productivity and efficiency, only a few focus on the electricity intensity (EI) of economic output. As these studies largely examine the declining trend in EI, the increasing and/or fluctuating trends in EI have not been studied. We analyze EI trends by estimating the progress ratios from experience curves of 91 countries from 1991 to 2011. The results reveal wide variation in progress ratios, ranging from 53% to 135%, with an average of 101.5%. Furthermore, more than half of the 91 countries displayed a kinked slope, indicating the fluctuating rate of change in EI. The rate of population growth seems to be related to the increasing EI trends. A clear understanding of the relative performance of each country in terms of the progress ratio and the pattern of EI trends would be useful for the country’s policymakers to develop strategic options for the future.

Deriving Experience Curves and Implementing Technological Learning in Energy System Models

Technological learning encompasses a variety of mechanisms by which technologies improve and decrease in costs. Experience curves are commonly used to analyze and explicitly quantify technological learning. This chapter presents the history and basic methodology of experience curves, and discusses the implementation of experience curves in energy system and sectoral energy models. Several key results of the REFLEX project with respect to state-of-the-art experience curves, and the implementation of experience curves in the REFLEX Energy Modeling System are highlighted. Finally, a set of key lessons learned in the REFLEX project are presented, discussing both methodological issues of experience curves as well as key issues with regard to the implementation of experience curves in different types of energy system and sectoral energy models.