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Interethnic Wage Variation in the Helsinki Area

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  • Jan Saarela

    (Department of Social Sciences, Åbo Akademi University, Finland)

  • Fjalar Finnäs

    (Institutet för Finlandssvensk Samhällsforskning, Åbo Akademi University)

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    Abstract

    This paper compares wage income of Swedish-speaking and Finnish-speaking employees in the Helsinki metropolitan area. Longitudinal data are analysed with random-effects tobit models. We find that Swedish-speaking males on average have 17 per cent higher wages than Finnish-speaking males. Two thirds of this wage gap can be attributed to characteristics differences, particularly education and age. For females the wage difference is very small. The findings echo previous research in the sense that they point out a favourable labour market performance of the Swedish-speaking minority in Finland and that differences between language groups are larger among males than among females.

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    Bibliographic Info

    Article provided by Finnish Economic Association in its journal Finnish Economic Papers.

    Volume (Year): 17 (2004)
    Issue (Month): 1 (Spring)
    Pages: 35-48

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    Handle: RePEc:fep:journl:v:17:y:2004:i:1:p:35-48

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    1. David Neumark, 1987. "Employers' discriminatory behavior and the estimation of wage discrimination," Special Studies Papers 227, Board of Governors of the Federal Reserve System (U.S.).
    2. Trejo, Stephen J, 1997. "Why Do Mexican Americans Earn Low Wages?," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1235-68, December.
    3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
    4. Jan Saarela & Fjalar Finnäs, 2002. "Language-group Differences in Very Early Retirement in Finland," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 7(3), pages 49-66, July.
    5. Saarela, Jan & Finnas, Fjalar, 2003. "Unemployment and native language: the Finnish case," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(1), pages 59-80, March.
    6. Saarela, Jan & Finnäs, Fjalar, 2002. "Language-Group Differences in Very Early Retirement in Finland," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 A2-3, International Conferences on Panel Data.
    7. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
    8. Nawata, Kazumitsu, 1993. "A note on the estimation of models with sample-selection biases," Economics Letters, Elsevier, vol. 42(1), pages 15-24.
    9. Tomi Kyyrä, 1999. "Post-Unemployment Wages and Economic Incentives to Exit from Unemployment," Research Reports 56, Government Institute for Economic Research Finland (VATT).
    10. F. L. Jones, 1983. "On Decomposing the Wage Gap: A Critical Comment on Blinder's Method," Journal of Human Resources, University of Wisconsin Press, vol. 18(1), pages 126-130.
    11. S. J. Drinkwater & N. C. O'Leary, 1997. "Unemployment in Wales: Does Language Matter?," Regional Studies, Taylor & Francis Journals, vol. 31(6), pages 583-591.
    12. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    13. repec:att:wimass:9217 is not listed on IDEAS
    14. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    15. Chiswick, Barry R, 1983. "An Analysis of the Earnings and Employment of Asian-American Men," Journal of Labor Economics, University of Chicago Press, vol. 1(2), pages 197-214, April.
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