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Glass Ceilings or Glass Doors? Wage Disparity Within and Between Firms

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  • Pendakur, Krishna

    ()
    (Simon Fraser University)

  • Woodcock, Simon D.

    ()
    (Simon Fraser University)

Abstract

We investigate whether immigrant and minority workers’ poor access to high-wage jobs – that is, glass ceilings – is attributable to poor access to jobs in high-wage firms, a phenomenon we call glass doors. Our analysis uses linked employer-employee data to measure mean- and quantile-wage differentials of immigrants and ethnic minorities, both within and across firms. We find that glass ceilings exist for some immigrant groups, and that they are driven in large measure by glass doors. For some immigrant groups, the sorting of these workers across firms accounts for as much as half of the economy-wide wage disparity they face.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4626.

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Length: 30 pages
Date of creation: Dec 2009
Date of revision:
Publication status: published in: Journal of Business and Economic Statistics, 2010, 28(1), 181-189
Handle: RePEc:iza:izadps:dp4626

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Keywords: quantile regression; visible minorities; immigration; wage differentials; glass ceilings; linked employer-employee data;

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References

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  1. John M. Abowd & Francis Kramarz & David N. Margolis, 1994. "High-Wage Workers and High-Wage Firms," CIRANO Working Papers, CIRANO 94s-23, CIRANO.
  2. Koenker, Roger, 2004. "Quantile regression for longitudinal data," Journal of Multivariate Analysis, Elsevier, Elsevier, vol. 91(1), pages 74-89, October.
  3. Albrecht, James & Björklund, Anders & Vroman, Susan, 2001. "Is There a Glass Ceiling in Sweden?," IZA Discussion Papers 282, Institute for the Study of Labor (IZA).
  4. Joshua Angrist & Victor Chernozhukov & Iván Fernández-Val, 2006. "Quantile Regression under Misspecification, with an Application to the U.S. Wage Structure," Econometrica, Econometric Society, Econometric Society, vol. 74(2), pages 539-563, 03.
  5. Wiji Arulampalam & Alison Booth & Mark L. Bryan, 2006. "Is There a Glass Ceiling over Europe? Exploring the Gender Pay Gap across the Wages Distribution," CEPR Discussion Papers, Centre for Economic Policy Research, Research School of Economics, Australian National University 510, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  6. Abdurrahman Aydemir & Mikal Skuterud, 2008. "The Immigrant Wage Differential within and across Establishments," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 61(3), pages 334-352, April.
  7. Sara Rica & Juan Dolado & Vanesa Llorens, 2008. "Ceilings or floors? Gender wage gaps by education in Spain," Journal of Population Economics, Springer, Springer, vol. 21(3), pages 751-776, July.
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Citations

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Cited by:
  1. Christian M. Dahl & Daniel le Maire & Jakob R. Munch, 2009. "Wage Dispersion and Decentralization of Wage Bargaining," Discussion Papers 09-15, University of Copenhagen. Department of Economics.
  2. Barth, Erling & Bratsberg, Bernt & Raaum, Oddbjørn, 2012. "Immigrant wage profiles within and between establishments," Labour Economics, Elsevier, Elsevier, vol. 19(4), pages 541-556.
  3. Ana Damas de Matos, 2012. "The Careers of Immigrants," CEP Discussion Papers, Centre for Economic Performance, LSE dp1171, Centre for Economic Performance, LSE.
  4. Jahn, Elke & Hirsch, Boris & Toomet, Ott & Hochfellner, Daniela, 2013. "Does better pre-migration performance accelerate immigrants' wage assimilation?," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79833, Verein für Socialpolitik / German Economic Association.
  5. Hou, Feng & Picot, Garnett, 2010. "Preparing for Success in Canada and the United States: the Determinants of Educational Attainment Among the Children of Immigrants," CLSSRN working papers, Vancouver School of Economics clsrn_admin-2010-13, Vancouver School of Economics, revised 30 Apr 2010.
  6. Zibrowius, Michael, 2011. "Convergence or divergence? Immigrant wage assimilation patterns in Germany," IWQW Discussion Paper Series 03/2011, Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW).
  7. Merlino, Luca Paolo, 2012. "Discrimination, technology and unemployment," Labour Economics, Elsevier, Elsevier, vol. 19(4), pages 557-567.
  8. Sarra Ben Yahmed, 2012. "Gender Wage Gaps across Skills and Trade Openness," AMSE Working Papers 1232, Aix-Marseille School of Economics, Marseille, France, revised Nov 2012.
  9. Bossler, Mario, 2014. "Sorting within and across establishments : the immigrant-native wage differential in Germany," IAB Discussion Paper 201410, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  10. Javdani, Mohsen & McGee, Andrew, 2013. "Intra-Firm Upward Mobility and Immigration," IZA Discussion Papers 7378, Institute for the Study of Labor (IZA).
  11. Hassink, Wolter & Russo, Giovanni, 2010. "The Glass Door: The Gender Composition of Newly-Hired Workers Across Hierarchical Job Levels," IZA Discussion Papers 4858, Institute for the Study of Labor (IZA).
  12. Eliasson, Tove, 2013. "Decomposing immigrant wage assimilation - the role of workplaces and occupations," Working Paper Series, Center for Labor Studies, Uppsala University, Department of Economics 2013:6, Uppsala University, Department of Economics.
  13. Eliasson, Tove, 2013. "Decomposing immigrant wage assimilation - the role of workplaces and occupations," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2013:7, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  14. Hou, Feng & Picot, Garnett, 2009. "Seeking Success in Canada and the United States: the Determinants of Labour Market Outcomes Among the Children of Immigrants," CLSSRN working papers, Vancouver School of Economics clsrn_admin-2009-63, Vancouver School of Economics, revised 28 Nov 2009.

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