Immigrant–Native Wage Inequality across Occupational Sectors in Australia
AbstractWe investigate wage inequality by migrant status across white collar and blue collar occupations in Australia. We use the reweighting and recentered influence function regression methods proposed by Firpo, Fortin, and Lemieux (2009) to decompose wage differentials across its distribution. Migrants are observed to have a wage advantage, and this wage differential varies over the wage distribution as well as by occupation. Significant wage differentials are found above the median: positive for white collar workers and negative for blue collar workers. Overall, the wage advantage of migrants reflects their superior labour market characteristics, and in particular, their levels of education. A decomposition analysis indicates that migrants receive lower returns for their education. We explore the wage differences by country of origin and find that English language proficiency plays an important role.
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Bibliographic InfoPaper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number 14-14.
Length: 28 pages
Date of creation: Apr 2014
Date of revision:
Contact details of provider:
Postal: Department of Economics, Monash University, Victoria 3800, Australia
Web page: http://www.buseco.monash.edu.au/eco/
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Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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