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Wage Differentials between Native and Immigrant Women in Spain: Accounting for Differences in the Supports

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Author Info

  • Nicodemo, Catia

    ()
    (University of Oxford)

  • Ramos, Raul

    ()
    (University of Barcelona)

Abstract

The objective of the study is to quantify the wage gap between native and immigrant women in Spain taking into account differences in their characteristics and the need to control for common support. Using the microdata from the Social Security Records (MCVL) and with a matching procedure of Ñopo (2008) we analysed the decomposition of the wage gap. The advantage of this procedure is that we can simultaneously estimate the common support and the mean counterfactual wage for the women on the common support. In addition, we can describe not only differences at the mean, but along the entire wage distribution. The results obtained indicate that, on average, immigrants women earn less than native in the Spanish labour market. This wage gap is bigger when we analyse the developing countries, but our main finding is that part of this wage gap is related to difference in common supports, i.e. immigrant women have different characteristics than native women that make them less attractive in the labour market. If the need to control for common support is neglected, estimates of the wage gap will be biased.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5571.

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Length: 25 pages
Date of creation: Mar 2011
Date of revision:
Publication status: published in: International Journal of Manpower, 2012, 33 (1), 118-136
Handle: RePEc:iza:izadps:dp5571

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Keywords: counterfactual decomposition; quantile regression; immigration; common support;

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References

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  1. Adsera, Alicia & Chiswick, Barry R., 2004. "Are There Gender and Country of Origin Differences in Immigrant Labor Market Outcomes across European Destinations?," IZA Discussion Papers, Institute for the Study of Labor (IZA) 1432, Institute for the Study of Labor (IZA).
  2. José-Ignacio Antón & Rafael Muñoz de Bustillo & Miguel Carrera, 2010. "From guests to hosts: immigrant-native wage differentials in Spain," International Journal of Manpower, Emerald Group Publishing, Emerald Group Publishing, vol. 31(6), pages 645-659, September.
  3. Antón, José-Ignacio & Muñoz de Bustillo, Rafael & Carrera, Miguel, 2010. "Raining stones? Female immigrants in the Spanish Labor Market," MPRA Paper, University Library of Munich, Germany 20582, University Library of Munich, Germany.
  4. Hipólito Simón & Esteban Sanromá & Raúl Ramos, 2008. "Labour segregation and immigrant and native-born wage distributions in Spain: an analysis using matched employer–employee data," Spanish Economic Review, Springer, Springer, vol. 10(2), pages 135-168, June.
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Cited by:
  1. Garcia Cruz, Gustavo Adolfo, 2014. "Labor Informality: Choice or Sign of Segmentation? A Quantile Regression Approach at the Regional Level for Colombia," MPRA Paper, University Library of Munich, Germany 55224, University Library of Munich, Germany.

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