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

Qualifications, Discrimination, or Assimilation? An Extended Framework for Analysing Immigrant Wage Gaps

Contents:

Author Info

  • Nielsen, Helena Skyt

    ()
    (Aarhus University)

  • Rosholm, Michael

    ()
    (Aarhus University)

  • Smith, Nina

    ()
    (Aarhus University)

  • Husted, Leif

    ()
    (KORA - Danish Institute for Local and Regional Government Research)

Abstract

In this paper, we analyze immigrant wage gaps and propose an extension of the traditional wage decomposition technique, which is a synthesis from two strains of literature on ethnic/immigrant wage differences, namely the ‘assimilation literature’ and the ‘discrimination literature’. We estimate separate wage equations for natives and a number of immigrant groups using panel data sample selection models. Based on the estimations, we find that the immigrant wage gap is caused by a lack of qualifications and incomplete assimilation, and that a large fraction of that gap would disappear if only immigrants could find employment and thus accumulate work experience.

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://ftp.iza.org/dp365.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 365.

as in new window
Length: 42 pages
Date of creation: Sep 2001
Date of revision:
Publication status: published in: Empirical Economics, 2004, 29 (4), 855-885
Handle: RePEc:iza:izadps:dp365

Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information:
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:

Related research

Keywords: immigrants; Wage assimilation; panel data sample selection model; wage gap;

Other versions of this item:

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. Long, James E, 1980. "The Effect of Americanization on Earnings: Some Evidence for Women," Journal of Political Economy, University of Chicago Press, vol. 88(3), pages 620-29, June.
  2. Ekaterini Kyriazidou, 1997. "Estimation of a Panel Data Sample Selection Model," Econometrica, Econometric Society, vol. 65(6), pages 1335-1364, November.
  3. Worswick, C. & Beach, C.M., 1990. "Is There a Double-Negative Effect on the Earnings of Immigrant Women?," Papers 1990-6, Queen's at Kingston - Sch. of Indus. Relat. Papers in Industrial Relations.
  4. 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.
  5. Oettinger, Gerald S, 1996. "Statistical Discrimination and the Early Career Evolution of the Black-White Wage Gap," Journal of Labor Economics, University of Chicago Press, vol. 14(1), pages 52-78, January.
  6. Jensen, Peter & Rosholm, Michael & Verner, Mette, 2002. "A Comparison of Different Estimators for Panel Data Sample Selection Models," Working Papers 02-1, University of Aarhus, Aarhus School of Business, Department of Economics.
  7. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
  8. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
  9. Husted, Leif & Skyt Nielsen, Helena & Rosholm, Michael & Smith, Nina, 2000. "Employment and Wage Assimilation of Male First Generation Immigrants in Denmark," CLS Working Papers 00-1, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
  10. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-53, September.
  11. Dustmann, Christian & Rochina-Barrachina, María Engracia, 2000. "Selection Correction in Panel Data Models: An Application to Labour Supply and Wages," IZA Discussion Papers 162, Institute for the Study of Labor (IZA).
  12. Abul Shamsuddin, 1998. "Thedouble-negativeeffect onthe earnings of foreign-born females in Canada," Applied Economics, Taylor & Francis Journals, vol. 30(9), pages 1187-1201.
  13. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259 Elsevier.
  14. Francis Vella, 1998. "Estimating Models with Sample Selection Bias: A Survey," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 127-169.
  15. Coate, S. & Loury, G.C., 1992. "Will Affirmative Action Policies Eliminate Negative Stereotypes?," Papers 3, Boston University - Department of Economics.
Full references (including those not matched with items on IDEAS)

Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Why Indian immigrants earn higher than others in America?
    by Murtaza Haider in eKonometrics on 2012-05-25 19:49:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Zimmermann, Klaus F. & Kahanec, Martin & Constant, Amelie F. & DeVoretz, Don J. & Gataullina, Liliya & Zaiceva, Anzelika, 2008. "Report No. 16: Study on the Social and Labour Market Integration of Ethnic Minorities," IZA Research Reports 16, Institute for the Study of Labor (IZA).
  2. Nielsen, Helena Skyt & Rosholm, Michael & Smith, Nina & Husted, Leif, 2001. "Intergenerational transmissions and the school-to-work transition of 2. generation immigrants," CLS Working Papers 01-4, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
  3. Anees, Muhammad & Sajjad, Muhammad & Ahmed, Ishfaq, 2011. "A counterfactual decomposition analysis of immigrants-natives earnings in Malaysia," Economics Discussion Papers 2011-51, Kiel Institute for the World Economy.
  4. Waisman, Gisela & Larsen, Birthe, 2008. "Who is Hurt by Discimination?," SULCIS Working Papers 2008:4, Stockholm University Linnaeus Center for Integration Studies - SULCIS.
  5. Steinar Strøm & Alessandra Venturini & Claudia Villosio, 2013. "Wage assimilation: migrants versus natives and foreign migrants versus internal migrants," RSCAS Working Papers 2013/30, European University Institute.
  6. Anna Cristina d'Addio & Isabelle De Greef & Michael Rosholm, 2002. "Assessing Unemployment Traps in Belgium using Panel Data Sample Selection models," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 C1-3, International Conferences on Panel Data.
  7. Florian Lehmer & Johannes Ludsteck, 2011. "The Immigrant Wage Gap in Germany: Are East Europeans Worse Off?," ERSA conference papers ersa10p769, European Regional Science Association.
  8. Edgard Polanco, 2009. "Asimilación laboral de los inmigrantes colombianos en Estados Unidos," REVISTA DE ECONOMÍA DEL ROSARIO, UNIVERSIDAD DEL ROSARIO.
  9. Chletsos, Michael & Roupakias, Stelios, 2012. "Native-immigrant wage differentials in Greece: discrimination and assimilation," MPRA Paper 39862, University Library of Munich, Germany.
  10. Kahanec, Martin & Zaiceva, Anzelika & Zimmermann, Klaus F., 2010. "Ethnic Minorities in the European Union: An Overview," IZA Discussion Papers 5397, Institute for the Study of Labor (IZA).
  11. Blume, Kræn & Verner, Mette, 2006. "Welfare Dependency among Danish Immigrants," Working Papers 06-6, University of Aarhus, Aarhus School of Business, Department of Economics.
  12. Barth, Erling & Bratsberg, Bernt & Raaum, Oddbjørn, 2003. "Local Unemployment and the Earnings Assimilation of Immigrants in Norway," Memorandum 19/2002, Oslo University, Department of Economics.
  13. Mahmood, Talat & Schömann, Klaus, 2009. "The decision to migrate: A simultaneous decision making approach," Discussion Papers, Research Unit: Competition and Innovation SP II 2009-17, Social Science Research Center Berlin (WZB).
  14. Li, Rui & Li, Qinghai & Huang, Shaoan & Zhu, Xi, 2013. "The credit rationing of Chinese rural households and its welfare loss: An investigation based on panel data," China Economic Review, Elsevier, vol. 26(C), pages 17-27.
  15. Talat Mahmood & Klaus Schömann, 2002. "The Determinants of the Migration Decision of IT-graduates from Pakistan: Empirical Evidence for the Design of a German "Green Card"," CIG Working Papers FS IV 02-03a, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
  16. Wido Geis, 2010. "High Unemployment in Germany: Why do Foreigners Suffer Most?," Ifo Working Paper Series Ifo Working Paper Nr. 90, Ifo Institute for Economic Research at the University of Munich.
  17. Talat Mahmood & Klaus Schömann, 2003. "On the Migration Decision of IT-Graduates: A Two-Level Nested Logit Model," CIG Working Papers SP II 2003-22, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).

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:iza:izadps:dp365. 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: (Mark Fallak).

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.