Countries With the Most Income Growth for Immigrants
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Key Takeaways
- Immigrants in Germany see the strongest wage growth, with annual earnings rising by 48% over five years.
- U.S. immigrant incomes typically grow by 43% between year one and year five.
- New Zealand and the Netherlands are the only OECD countries where immigrant earnings decline after five years.
As immigrants settle into a new country, their earnings typically rise as they gain work experience and integrate into the labor market.
However, the pace of earnings growth for immigrants varies across developed economies. While some countries offer strong upward mobility, others show little wage progression or even wage declines over the first five years.
This graphic shows the change in immigrants’ average real annual earnings between their first and fifth year in the host-country labor market using data from the OECD’s International Migration Outlook 2025.
Where Immigrant Earnings Rise the Fastest
Across most OECD countries in the dataset, immigrant earnings grow significantly in the first five years. The table below ranks countries by the percentage increase in average real earnings for immigrants:
| Country | Year One Earnings (USD) | Year Five Earnings (USD) | % Change |
|---|---|---|---|
 Germany |
$17,004 | $25,224 | 48% |
 Sweden |
$15,936 | $22,908 | 44% |
 U.S. |
$27,375 | $39,163 | 43% |
 Finland |
$25,872 | $36,804 | 42% |
 Italy |
$14,892 | $19,236 | 29% |
 Canada |
$29,557 | $37,618 | 27% |
 Spain |
$14,304 | $18,204 | 27% |
 Colombia |
$2,904 | $3,636 | 25% |
 Denmark |
$37,932 | $46,716 | 23% |
 Austria |
$10,620 | $12,816 | 21% |
 France |
$18,936 | $22,560 | 19% |
 Portugal |
$9,300 | $10,848 | 17% |
 Norway |
$59,752 | $67,877 | 14% |
 New Zealand |
$48,120 | $45,432 | -6% |
 Netherlands |
$26,592 | $24,864 | -6% |
Germany leads the ranking, with a 48% increase in immigrant earnings from year one to year five of entry. Germany is the largest destination for immigrants in the European Union, and around 20% of its population is foreign-born.
In the United States, the world’s top destination country for immigrants, earnings rise from $27,375 in year one to $39,163 in year five, an increase of 43% or nearly $12,000.
On the other hand, the Netherlands and New Zealand buck the trend of growth in immigrant earnings. In both countries, immigrants on average earn slightly less after five years than they did in their first year, with income falling by 6%.
Overall, immigrants across the 15 OECD countries see their earnings rise by an average of 24% within five years.
The Immigrant–Native Earnings Gap
Based on data from 2000 to 2019, the OECD found that immigrants at entry earned 34% less than native-born workers of the same age and sex.
Almost two-thirds of this gap was due to the concentration of immigrants in lower-paying sectors and firms, and the gap narrowed significantly over time. By the fifth year, the gap decreased by 13 percentage points to 21%, and by the tenth year, the gap more than halved, but remained persistent.
Much of this convergence came from immigrants shifting into better-paying firms and sectors as they gained experience and credentials, and increased their number of working hours.
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If you enjoyed today’s post, see The Best Migration Destinations in 2025 on Voronoi.
- Source: https://www.visualcapitalist.com/ranked-countries-with-the-most-income-growth-for-immigrants/
