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The composition of wage differentials between migrants and natives

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  • Nanos, Panagiotis
  • Schluter, Christian

Abstract

We consider the role of unobservables, such as differences in search frictions, reservation wages, and productivities for the explanation of wage differentials between migrants and natives. We disentangle these by estimating an empirical general equilibrium search model with on-the-job search due to Bontemps et al. (1999) on segments of the labour market defined by occupation, age, and nationality using a large scale German administrative dataset.

Suggested Citation

  • Nanos, Panagiotis & Schluter, Christian, 2014. "The composition of wage differentials between migrants and natives," European Economic Review, Elsevier, vol. 65(C), pages 23-44.
  • Handle: RePEc:eee:eecrev:v:65:y:2014:i:c:p:23-44
    DOI: 10.1016/j.euroecorev.2013.10.003
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    References listed on IDEAS

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    Cited by:

    1. Eva Moreno-Galbis & Ahmed Tritah, 2014. "Effects of immigration in frictional labor markets: theory and empirical evidence from EU countries," Working Papers halshs-01100269, HAL.
    2. Moreno-Galbis, Eva & Tritah, Ahmed, 2016. "The effects of immigration in frictional labor markets: Theory and empirical evidence from EU countries," European Economic Review, Elsevier, vol. 84(C), pages 76-98.

    More about this item

    Keywords

    Immigrants; Decomposition of wage differentials; Job search; Turnover;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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