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Wage differentials between local and foreign workers in Macao: Discrimination?

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  • Chan, Chi Shing
  • Kwan, Fung
  • Lei, Ka Chon

Abstract

This paper looks into the wage differential between local and foreign workers in Macao. We applied standard wage decomposition techniques to official wage statistics to identify wage gaps according to sector and occupation, among other dimensions. The results suggest that, in addition to wage discrimination against foreign workers as a whole, Macao’s employers tend to pay skilled foreign workers premium wages, whereas less-skilled foreign workers receive lower wages than their local counterparts.

Suggested Citation

  • Chan, Chi Shing & Kwan, Fung & Lei, Ka Chon, 2022. "Wage differentials between local and foreign workers in Macao: Discrimination?," Journal of Asian Economics, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:asieco:v:81:y:2022:i:c:s1049007822000586
    DOI: 10.1016/j.asieco.2022.101501
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    More about this item

    Keywords

    Macao; Foreign workers’ wage; Discrimination; Decomposition;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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