Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Effect of Host Society Culture on Migrant Wage Discrimination: Approaching the Roestigraben

Contents:

Author Info

Registered author(s):

    Abstract

    This paper investigates whether host society culture affects migrant wage discrimination, i.e. whether migrant wage discrimination is more intense in host societies where culture is more inward-looking. The motivation for this investigation in the Swiss context stems from two stylized facts showing that (i) political preferences on issues related to migration, asylum and naturalization of foreigners are markedly more conservative in the German region and (ii) that average wage differences between migrants and natives are larger in the German region. Building on this, the paper begins with a comparison of returns to factors (for eight migrant groups compared to natives) using a human capital model of wage determination. It then performs an Oaxaca decomposition of wage differentials in order to compare its unexplained component across groups and regions. The last step consists in implementing a regression discontinuity design approach to establish whether host society culture is one of the determinants explaining differences in migrant wage discrimination across the language border. Results show returns to factors of wage-earning migrants are lower in the German region for a preponderant majority of migrant groups. The analysis of wage differentials and the associated unexplained parts also support the hypothesis that wage discrimination is more pronounced in this region of the Swiss labor market. Finally, results of the regression discontinuity design approach confirm that host society culture is one of the determinants of wage discrimination endured by migrants.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://repec.graduateinstitute.ch/pdfs/Working_papers/HEIDWP08-2012.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Economics Section, The Graduate Institute of International Studies in its series IHEID Working Papers with number 08-2012.

    as in new window
    Length: 41 pages
    Date of creation: 22 Apr 2012
    Date of revision:
    Handle: RePEc:gii:giihei:heidwp08-2012

    Contact details of provider:
    Postal: P.O. Box 36, 1211 Geneva 21
    Phone: ++41 22 731 17 30
    Fax: ++41 22 738 43 06
    Email:
    Web page: http://www.graduateinstitute.ch/economics
    More information through EDIRC

    Related research

    Keywords: immigration; migration; labour market; culture; political preferences; wage discrimination; Switzerland;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    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.:
    as in new window
    1. Guido Imbens & Thomas Lemieux, 2007. "Regression Discontinuity Designs: A Guide to Practice," NBER Technical Working Papers 0337, National Bureau of Economic Research, Inc.
    2. Bauer, Philipp C. & Riphahn, Regina T., 2004. "Heterogeneity in the Intergenerational Transmission of Educational Attainment: Evidence from Switzerland on Natives and Second Generation Immigrants," IZA Discussion Papers 1354, Institute for the Study of Labor (IZA).
    3. Brügger, Beatrix & Lalive, Rafael & Zweimüller, Josef, 2009. "Does Culture Affect Unemployment? Evidence from the Röstigraben," IZA Discussion Papers 4283, Institute for the Study of Labor (IZA).
    4. Chiswick, Barry R. & Le, Anh T. & Miller, Paul W., 2006. "How Immigrants Fare Across the Earnings Distribution: International Analyses," IZA Discussion Papers 2405, Institute for the Study of Labor (IZA).
    5. Neuman, Shoshana & Oaxaca, Ronald L, 2004. "Wage Differentials in the 1990s in Israel: Endowments, Discrimination and Selectivity," CEPR Discussion Papers 4709, C.E.P.R. Discussion Papers.
    6. Erik Lindqvist & Robert Östling, 2013. "Identity and redistribution," Public Choice, Springer, vol. 155(3), pages 469-491, June.
    7. Saez-Marti, Maria & Zenou, Yves, 2005. "Cultural Transmission and Discrimination," IZA Discussion Papers 1880, Institute for the Study of Labor (IZA).
    8. Lindqvist, Erik, 2008. "Identity and Redistribution," Working Paper Series, Research Institute of Industrial Economics 735, Research Institute of Industrial Economics.
    9. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
    10. Alfonso Sousa-Poza, 2004. "Is the Swiss Labor Market Segmented? An Analysis Using Alternative Approaches," LABOUR, CEIS, CEIS, vol. 18(1), pages 131-161, 03.
    11. Klor, Esteban F & Shayo, Moses, 2007. "Social Identity and Preferences over Redistribution," CEPR Discussion Papers 6406, C.E.P.R. Discussion Papers.
    12. Robert Elliott & Joanne Kathryn Lindley, 2006. "Immigrant Wage Differentials, Ethnicity and Occupational Clustering," Working Papers 2006008, The University of Sheffield, Department of Economics, revised May 2006.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:gii:giihei:heidwp08-2012. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Johannes Eugster).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.