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Sources of Earnings Differentials Among Migrants and Natives


  • Ather Maqsood Ahmed

    (Pakistan Institute of Development Economics, Islamabad.)


The theory of human capital postulates that earnings of different categories of workers, be they male or female, black or white, unionised or non-unionised depend on the level of human capital endowment of these individuals [Becker (1964) and Mineer (1974)]. Besides educational attainment and on-the-job experience, part of the earnings differential, at lest in the short run, can also result from market imperfections such as restrictions on factor mobility or other artificial distortions. However, despite concerted efforts by public and social institutions to remove social injustice, the automatic long run market clearance as envisaged by classical economists is not always there. It is not uncommon to find workers with identical background and skills receiving differentials treatment in terms of wages and other rewards. This suggests that unobservable personal characteristics are also positively valued at the market and that the market has a "taste" for discrimination! The theory of discrimination thus hypothesises that differential wages ,can exit if market differentiates and treats distinct categories of workers on the basis of race, gender or similar categorisations.

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  • Ather Maqsood Ahmed, 1998. "Sources of Earnings Differentials Among Migrants and Natives," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 939-953.
  • Handle: RePEc:pid:journl:v:37:y:1998:i:4:p:939-953

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    References listed on IDEAS

    1. Krieg, Randall, 1990. "Does Migration Function to Reduce Earnings Differentials by Race and Gender?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 24(3), pages 211-221.
    2. Chris Robinson & Nigel Tomes, 1982. "Self-Selection and Interprovincial Migration in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 15(3), pages 474-502, August.
    3. Behrman, Jere R. & Wolfe, Barbara L., 1984. "Labor force participation and earnings determinants for women in the special conditions of developing countries," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 259-288.
    4. Ather Maqsood Ahmed & Ismail Sirageldin, 1993. "Socio-economic Determinants of Labour Mobility in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(2), pages 139-157.
    5. Zweimuller, J & Winter-Ebmer, R, 1994. "Gender Wage Differentials in Private and Public Sector Jobs," Journal of Population Economics, Springer;European Society for Population Economics, vol. 7(3), pages 271-285, July.
    6. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-243, May.
    7. Hotchkiss, Julie L & Moore, Robert E, 1996. "Gender Compensation Differentials in Jamaica," Economic Development and Cultural Change, University of Chicago Press, vol. 44(3), pages 657-676, April.
    8. Randall K. Filer, 1983. "Sexual Differences in Earnings: The Role of Individual Personalities and Tastes," Journal of Human Resources, University of Wisconsin Press, vol. 18(1), pages 82-99.
    9. Rosen, Sherwin, 1987. "The theory of equalizing differences," Handbook of Labor Economics,in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 12, pages 641-692 Elsevier.
    10. Albert Ade Okunade, 1995. "A note on benefit differentials of black and white female workers," Applied Economics Letters, Taylor & Francis Journals, vol. 2(10), pages 351-354.
    11. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
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