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Immigrant wage profiles within and between establishments

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Author Info

  • Barth, Erling
  • Bratsberg, Bernt
  • Raaum, Oddbjørn

Abstract

Life cycle wages of immigrants from developing countries fall short of catching up with wages of natives. Using linked employer–employee data, we show that 40% of the native–immigrant wage gap is explained by differential sorting across establishments. We find that returns to experience and seniority are similar for immigrant and native workers, but that differences in job mobility and intermittent spells of unemployment are major sources of disparity in lifetime wage growth. The inferior wage growth of immigrants primarily results from failure to advance to higher paying establishments over time. These empirical patterns are consistent with signaling disadvantages of immigrant job seekers, but not with the explanation that low wage growth follows from inferior information about employers and job opportunities.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 19 (2012)
Issue (Month): 4 ()
Pages: 541-556

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Handle: RePEc:eee:labeco:v:19:y:2012:i:4:p:541-556

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Web page: http://www.elsevier.com/locate/labeco

Related research

Keywords: Immigrants; Wages; Assimilation; Firm wage effects;

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References

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Cited by:
  1. Christian Dustmann, 2014. "Selective Outmigration and the Estimation of Immigrants Earnings Profiles," CReAM Discussion Paper Series 1402, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.

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