Against the growing demand for the STEM labour force, the study examines
labour market returns to STEM qualifications among immigrants who arrived
in Germany since the 1980s. Analysing the German microcensus data for
years 2015 and 2016, we demonstrate that skilled immigrants with STEM
qualifications largely attain better labour market outcomes in Germany
compared to immigrants without STEM qualifications, thus narrowing the
gap to their native-born counterparts. Male immigrants succeed in utilizing
their STEM capital better than female immigrants, but all immigrants face
difficulties in translating their STEM qualifications into STEM employment.
Our analyses further focus on returns to various STEM qualifications, attesting
that medical qualifications are especially beneficial for Germany’s female
immigrants. The analysis of heterogeneous effects of STEM qualifications
across major migrant groups reveals that Eastern European male immigrants
make the best of their STEM qualifications, whereas among women, STEM
qualified from Turkey or MENA countries are the most successful. These and
other findings are discussed both from the supply and demand sides of the
labour market.
