Is there monopsonistic discrimination against immigrants? First evidence from linked employer-employee data
Abstract
This paper investigates immigrants' and natives' labour supply to the firm within a semi-structural approach based on a dynamic monopsony framework. Applying duration models to a large administrative employer-employee data set for Germany, we find that once accounting for unobserved worker heterogeneity immi-grants supply labour less elastically to firms than natives. Under monopsonistic wage setting the estimated elasticity differential predicts a 4.7 log points wage penalty for immigrants thereby accounting for almost the entire unexplained native-immigrant wage differential of 2.9-5.9 log points. Our results imply that employers profit from discriminating against immigrants. -- Mithilfe eines semistrukturellen Schätzansatzes, der auf ei-nem dynamischen Monopsonmodell beruht, untersuchen wir das Arbeitsangebot von Immigranten und Einheimischen auf Firmenebene. Unter Verwendung von Verweil-dauermodellen und eines großen administrativen Firmen-Beschäftigten-Datensatzes für Deutschland finden wir, dass Immigranten eine geringere Arbeitsangebotselasti-zität auf Firmenebene aufweisen als Einheimische, sofern für unbeobachtete Personenheterogenität kontrolliert wird. Wird monopsonistische Lohnsetzung unter-stellt, so folgt aus den gefundenen Elastizitätsunterschieden ein Lohnabschlag für Immigranten von 4.7 Logpunkten. Dies entspricht nahezu dem gesamten unerklärten Lohndifferential zwischen Immigranten und Einheimischen in Höhe von 2.9-5.9 Log-punkten. Unsere Ergebnisse implizieren, dass Arbeitgeber von Lohndiskriminierung gegen Immigranten profitieren.Download Info
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Paper provided by Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics in its series Discussion Papers with number 79.Length:
Date of creation: 2012
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Handle: RePEc:zbw:faulre:79
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Web page: http://www.arbeitsmarkt.wiso.uni-erlangen.de/english-version/
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Keywords: monopsony; native-immigrant wage differential; discrimination; Germany;Other versions of this item:
- Hirsch, Boris & Jahn, Elke J., 2012. "Is There Monopsonistic Discrimination against Immigrants? First Evidence from Linked Employer-Employee Data," IZA Discussion Papers 6472, Institute for the Study of Labor (IZA).
- Jahn, Elke & Hirsch, Boris, 2012. "Is there monopsonistic discrimination against immigrants? First evidence from linked employer employee data," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 65417, Verein für Socialpolitik / German Economic Association.
- J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-06 (All new papers)
- NEP-LAB-2012-12-06 (Labour Economics)
- NEP-LMA-2012-12-06 (Labor Markets - Supply, Demand, & Wages)
- NEP-MIG-2012-12-06 (Economics of Human Migration)
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