Germany is becoming Europe's most popular destination for highly qualified migrants but struggles to reward them with adequately paid jobs, a new study finds.
According to a report by the Berlin Institute for Population and Development, immigrants to Germany are now more highly qualified than the average German.
The percentage of academics among those arriving in the country between 2005 and 2010 was 35%, compared to 20% in the native population.
This is a reversal of the pattern during the last wave of immigration to Germany. Between 1955 and 1973, when Germany had actively recruited "guest workers" from countries including Turkey, Spain or Greece, the new arrivals' average qualification levels were considerably lower.
The authors of the study attribute the change to reforms of the German residence law in 2005.
But converting a decent education into a well-paid job still remains difficult for foreigners moving to the country.
"Particularly, migrants from non-EU countries often end up in jobs for which they are over-qualified, partly because German companies fail to recognise their qualifications‚" said Franziska Woellert, one of the authors of the report.
A new law which enables migrants to have their qualifications authenticated in Germany was passed in 2011 but has only come into full effect this year.
Migrants are still considerably less likely than native Germans to work in highly paid jobs such within the civil service, medicine and banking.
Exemplifing Germany's problem is the experience of Simran Sodhi, a 27-year-old who holds an Indian passport and moved to Germany to study five years ago.
Sodhi is employed by the Berlin senate as one of about 60 "integration pilots" who advise first- and second-generation migrants on how to apply for jobs, look for apartments and get legal advice.
But last month Sodhi's own application for an extension to her residence permit was rejected. Her master's degree, she was told, meant she was over-qualified for her job.
Letters of support from her employers and prominent press coverage of her case swayed the authorities' minds, but Sodhi remains convinced that Germany needs to look at the way in which it deals with migrants, particularly asylum seekers.
"In Germany, asylum seekers are often kept in a legal limbo for a very long time. They are tolerated, but unable to seek housing or apply for work, which means they are unable to achieve the mental security to get on with their lives," she said.
The latest report comes in the wake of an OECD study in May which showed that Germany had established itself as the most popular destination in Europe for permanent migration, second among leading industrial nations only to the US.
Britain, which had been the most popular destination for migrants in Europe over the last five years, is now in third place.
Only ranked eighth by the OECD in 2009, Germany has increasingly attracted young people from Greece, Spain, Italy and eastern Europe who have struggled to find jobs in their home country due to the economic crisis.
Between 2011 and 2012, the number of migrants going to Germany had risen by as much as 38%, and 440,000 new migrants moved to the country in 2013. The average newcomer was 12 years younger than the average German resident.
• This article was amended on 5 June 2014. The reporter misunderstood Simran Sodhi's view on immigration. This has been clarified.