Understanding the Native-Immigrant Wage Gap Using Matched Employer-Employee Data. Evidence from Germany
AbstractHellerstein and Neumark (1999) developed a straightforward method to detect wage discrimination using matched employer-employee data. In this paper a new method to measure wage discrimination is proposed, that builds on the ideas first developed by Hellerstein and Neumark. It has four main advantages: it is robust to labor market segregation, it does not impose linearity on the wage setting equation, it avoids the problematic estimation of production functions, and it is not only a test for discrimination but also produces measures of discrimination. Using matched employer-employee data from Germany, I find that immigrants are being discriminated against. They receive wages which are 13 percent lower than native workers in the same firm.
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Bibliographic InfoPaper provided by Collegio Carlo Alberto in its series Carlo Alberto Notebooks with number 150.
Length: 51 pages
Date of creation: 2010
Date of revision:
Labor market discrimination; immigration; matched employer-employee data;
Find related papers by JEL classification:
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-18 (All new papers)
- NEP-LAB-2010-09-18 (Labour Economics)
- NEP-MIG-2010-09-18 (Economics of Human Migration)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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