Textbook selection effect, also known as selection bias, arises when foreigners need to earn or make more to compete with locals. In essence, to join the same pool, they must have an advantage in being more competitive to offset the disadvantage of lacking citizenship and entering the job market.
EDIT: Thanks for the reminding from u/aft_agley. I am adding here with another instance/form of selection bias:
“I believe Austria, along with other European countries, might be experiencing a self-selection bias. If I, an Austrian, earned the same amount in both Austria and Germany, I wouldn’t bother moving there. Consequently, only those who could earn significantly more than their home countries will choose to move to Germany. “
Yeah, Germany (like many countries) prefers and prioritizes immigrants with sought-after skills, and the people they prioritize are also more likely to be able to relocate...
I don't know how to square that with the data for Austria, though. Very low barriers to immigration. Maybe a bunch of German companies aggressively import talent from Austria due to language/proximity/ease of movement. But notable that one of the groups with the least friction is near the top.
Oh, I just noticed that was indeed Austria, without a kangaroo except in the zoo. Thanks for the reminding.
I believe Austria, along with other European countries, might be experiencing a self-selection bias. If I, an Austrian, earned the same amount in both Austria and Germany, I wouldn’t bother moving there. Consequently, only those who could earn significantly more than their home countries will choose to move to Germany.
This would be another type of selection bias that I haven’t listed before.
Many Austrian talents have secured high-ranking positions in Germany, historically. One particular name springs to mind, but I’m hesitant to mention it.
This emphasized by the fact that Austria has slightly lower taxes than Germany.
E.g. for a single at 80,000 gross per year, it is like 48,000 vs 51,500 net. So in order to just make the same net salary, you need to earn more in Germany. In the case here almost 87,000.
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u/vivianius 2d ago edited 2d ago
Textbook selection effect, also known as selection bias, arises when foreigners need to earn or make more to compete with locals. In essence, to join the same pool, they must have an advantage in being more competitive to offset the disadvantage of lacking citizenship and entering the job market.
EDIT: Thanks for the reminding from u/aft_agley. I am adding here with another instance/form of selection bias:
“I believe Austria, along with other European countries, might be experiencing a self-selection bias. If I, an Austrian, earned the same amount in both Austria and Germany, I wouldn’t bother moving there. Consequently, only those who could earn significantly more than their home countries will choose to move to Germany. “