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Changes in the Czech Wage Structure: Does Immigration Matter?

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  • Kamil DYBCZAK

    ()
    (International Monetary Fund and World Bank, Washington, D.C.)

  • Kamil GALUSCAK

    ()
    (Czech National Bank, Economic Research Department)

Abstract

We find that immigrant workers do not affect changes in the Czech wage structure between 2002 and 2006 despite their substantial inflows. Instead, using the Albrecht et al. (2003) version of the Machado and Mata (2005) decomposition technique along the wage distribution, we find that changes in the wage structure are explained solely by increasing returns of native workers. In particular, we provide evidence on increasing returns to education of native workers along the wage distribution. Next, we suggest that increasing wage dispersion is due to changes in the observed characteristics of native workers, such as a rising level of education, rather than due to immigration inflows. Finally, we find that the negative immigrant-native wage gaps seem persistent along the wage distribution and are explained mainly by differences in observed characteristics.

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Bibliographic Info

Article provided by Charles University Prague, Faculty of Social Sciences in its journal Finance a uver - Czech Journal of Economics and Finance.

Volume (Year): 63 (2013)
Issue (Month): 2 (May)
Pages: 108-128

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Handle: RePEc:fau:fauart:v:63:y:2013:i:2:p:108-128

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Keywords: wage structure; immigration; matched employer-employee data; quantile regression; wage gap decomposition;

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References

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  1. Anabela Carneiro & Natércia Fortuna & José Varejão, 2012. "Immigrants at new destinations: how they fare and why," Journal of Population Economics, Springer, vol. 25(3), pages 1165-1185, July.
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Cited by:
  1. Jaromir Baxa & Michal Franta & Tomas Havranek & Roman Horvath & Miroslav Plasil & Marek Rusnak & Borek Vasicek, 2013. "Transmission of Monetary Policy," Occasional Publications - Edited Volumes, Czech National Bank, Research Department, edition 1, volume 11, number rb11/1 edited by Jan Babecky & Roman Horvath.
  2. Robert Ambrisko & Vitezslav Augusta & Jan Babecky & Michal Franta & Dana Hajkova & Petr Kral & Jan Libich & Pavla Netusilova & Milan Rikovsky & Jakub Rysanek & Pavel Soukup & Petr Stehlik & Vilem Vale, 2013. "Macroeconomic Effects of Fiscal Policy," Occasional Publications - Edited Volumes, Czech National Bank, Research Department, edition 2, volume 11, number rb11/2 edited by Jan Babecky & Kamil Galuscak.
  3. Zuzana Cahlíková & Wadim Strielkowski, 2013. "Positive Impacts of Labour Migration from Ukraine on the Czech Economy," Acta Oeconomica Pragensia, University of Economics, Prague, vol. 2013(1), pages 60-67.

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