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Firms, sorting, and the immigrant–native earnings gap

Author

Listed:
  • Benoit Dostie

    (HEC Montréal, Canada, and IZA, Germany)

Abstract

Recent research has tried to quantify how firms contribute to the immigrant–native earnings gap. Findings from several countries show that around 20% of the gap is due to firm policies that lead to a systematic underrepresentation of immigrants at higher-paying firms. Results also show that some of the closing of the gap over time is attributable to the reallocation of immigrants toward higher-paying employers. This pattern is especially pronounced for immigrants coming from disadvantaged countries, who face several barriers at initial entry, including language difficulties and lack of recognition of their educational credentials.

Suggested Citation

  • Benoit Dostie, 2022. "Firms, sorting, and the immigrant–native earnings gap," IZA World of Labor, Institute of Labor Economics (IZA), pages 488-488, January.
  • Handle: RePEc:iza:izawol:journl:2022:n:488
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    More about this item

    Keywords

    immigrants; earnings; workers; firms; sorting; human capital;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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