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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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    Cited by:

    1. 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.
    2. Fays, Valentine & Mahy, Benoît & Rycx, Francois & Volral, Mélanie, 2019. "Wage Discrimination Based on the Country of Birth: Do Tenure and Product Market Competition Matter?," IZA Discussion Papers 12706, Institute of Labor Economics (IZA).
    3. Busch, Christopher & Krueger, Dirk & Ludwig, Alexander & Popova, Irina & Iftikhar, Zainab, 2020. "Should Germany have built a new wall? Macroeconomic lessons from the 2015-18 refugee wave," Journal of Monetary Economics, Elsevier, vol. 113(C), pages 28-55.
    4. Charles Ka Yui Leung & Joe Cho Yiu Ng & Edward Tang, 2020. "Why is the Hong Kong Housing Market Unaffordable? Some Stylized Facts and Estimations," Globalization Institute Working Papers 380, Federal Reserve Bank of Dallas.
    5. Brunow, Stephan & Jost, Oskar, 2019. "Wages of migrant and native employees in Germany: new light on an old issue," IAB Discussion Paper 201910, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Zainab Iftikhar & Anna Zaharieva, 2019. "General equilibrium effects of immigration in Germany: Search and matching approach," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 31, pages 245-276, January.
    7. Sara Signorelli, 2020. "Do Skilled Migrants Compete with Native Workers? Analysis of a Selective Immigration Policy," Working Papers halshs-01983071, HAL.
    8. Matteo Cacciatore & Giuseppe Fiori & Nora Traum, 2020. "Hours and Employment Over the Business Cycle: A Structural Analysis," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 35, pages 240-262, January.
    9. Gürtzgen, Nicole & Blömer, Maximilian & Pohlan, Laura & Stichnoth, Holger & van den Berg, Gerard, 2016. "Estimating an Equilibrium Job Search Model for the German Labour Market," VfS Annual Conference 2016 (Augsburg): Demographic Change 145950, Verein für Socialpolitik / German Economic Association.
    10. Christiane Gross & Thomas Gurr & Monika Jungbauer-Gans & Sebastian Lang, 2020. "Prejudices against the unemployed—empirical evidence from Germany," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 54(1), pages 1-13, December.
    11. Brunow, Stephan & Jost, Oskar, 2020. "On the foreign to native wage differential in Germany: Does the home country matter?," IAB Discussion Paper 202026, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    12. Maximilian Joseph Blömer & Nicole Guertzgen & Laura Pohlan & Holger Stichnoth & Gerard J. Van den Berg, 2018. "Unemployment Effects of the German Minimum Wage in an Equilibrium Job Search Model," CESifo Working Paper Series 7160, CESifo.

    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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