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Overqualified and underpaid: Are immigrants earning less than native workers?

News RoomBy News RoomJuly 24, 2025
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Summary of Migration Pay Gaps in Europe and North America

pavementsomersize payments to immigrants in Europe and North America compared to local workers, the average pay gap has been a point of concern for decades. According to a Nature study, immigrants earn, on average, 17.9% less per year than natives in these regions. Among the most notable pay gaps are those in Canada, Denmark, France, Germany, Greece, and Norway, where the gap tends to increase with each generation.

Specifically, the study details that three-quarters of the overall pay gap can be attributed to three factors: lack of access to higher-paying jobs, and differences in negotiation skills between immigrants and native-born workers in the same jobs. In Spain, for instance, the pay gap stood at over 29% for.gallery/birth countries, the highest among all seven European countries. This highlights the persistent disparity in earnings between immigrants and natives.

Within Norway, Germany, France, and Netherlands, immigrants are earning between 15% and 20% less than local workers, a trend that is less pronounced in Sweden, where immigrants make just 7% less. This underscores the importance of considering both the native birthplace and the specific job market when assessing the impact of migration. Children of immigrants, on the other hand, earn an average of 5.7% less than their parents, suggesting a significant divide between the roles of parents and children in the workplace.

The study further notes that within-job differences between natives and children of immigrants are minimal, with differences only reaching 2% in all countries. This indicates a relatively equal division of work between parents and immigrants despite the persistent pay inequality. What can be done to address this disparity? The researchers point to a range of measures, including language training programs, job-specific training, assistance with finding employment opportunities, access to domestic education, and recognizing foreign qualifications.

In 2023, according to Eurostat data, 39.4% of non-EU citizens were overqualified for the jobs they were enrolled in, and the delivery of immigration policies, including the Skilled Immigration Act in Germany and the “Carte Talent” reJohnson granted in France, aim to provide skilled individuals with full employment opportunities. However, the individual differences in pay may not contribute directly to long-term economic growth and the merging of skills in Europe. By 2030, the study predicts that these disparities could narrow, ensuring that the benefits of immigration are maximized.

The smart immigration policy, which has roots in Europe’s education and job market, is a promising direction for addressing the current pay gap. These policies emphasize recognition of foreign qualifications and provide opportunities for immigrants to thrive in their Professional Training Side (PWorkspace). Measures such as language training and job training programs, offering亲戚-attribute guidance, are also being explored. However, the Exact impact of these initiatives on the overall economic environment requires further analysis.

Ultimately, the success or failure of smart immigration policies in Europe will determine the likelihood of significantly reducing the mismatch between immigrants and natives and achieving the European Gig economy by 2030. With the skills gap commensurate with productivity increases, Europe can position itself at the core of global talent exchange. The lesson here is that education, particularly in Higher Education (HSE), and the establishment of a culture of recognition for international qualifications are crucial for lifting the divide and ensuring the full potential of immigrants in the workforce. By fostering equality and collaboration, Europe can create a new generational divide free of pay discrimination and open the door to a new era of economic growth and social justice.

Humanized Version:

migration pay gaps in Europe and North America, averaging 18% less than native-born workers, are a growing concern. A recent study found that 75% of pay gaps between immigrants and natives can be attributed to the lack of higher-paying jobs and the difference in negotiation skills between the two groups. In smaller, migrant-driven economies like Spain, the pay gap stands at 30% and increases even more in Norway and Germany. While immigrants in Sweden earn just 7% less than natives, their children earn a similar=row or 5.7% less. The study highlights that within jobs, the difference between local and immigrant workers is minuscule, with a maximum of 2% in many countries.

The study also notes that immigrants from sub-Saharan Africa and the Middle East earn the highest pay gaps, reaching 26.1% and 23.7% respectively. Immigrants from Western and Western European countries experience the smallest pay differences compared to natives of those regions, around 9%. However, children of immigrants have much smaller earnings gaps, averaging 5.7% less than their parents. The researchers caution against flawed policies that plateform their focus solely on the border and emphasize the need for smarter interventions.

In 2024, Germany introduced the Skilled Immigration Act, which allowed foreign graduates to work in their respective professional training side, aiming to attract skilled professionals. France reformed its “Carte Talent” permit, a multi-year job-based skilled worker protection program, to help respond to labor shortages. These policies suggest that smart immigration policies, rooted in Europe’s education and skill development, can }: achieve meaningful job creation for immigrants. However, these measures must be complemented by broader societal changes and attitude toward immigration to realistically reduce the pay gap and create opportunities.

The smart immigration policy, which has provided a new pathway for addressing migration pay gaps, could lead to significant economic benefits in Europe. Studies suggest that progress in 2030 would close the skill gap expected and improve the GDP of European countries by 3% to 9%, bringing GDP growth closer to 3% in many countries. The researchers predict that these policies offer a clear route to narrowing the pay bracket and elevating the skills of the global workforce. Perhaps more so, this is a time when Europe must take bold steps to lift the divide, ensuring a brighter path forward for immigrants.

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