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Understanding the Native–Immigrant Wage Gap Using Matched Employer-Employee Data

Author

Listed:
  • Cristian Bartolucci

    (Cristian Bartolucci is affiliated with Collegio Carlo Alberto.)

Abstract

In this article, the author proposes a new method for measuring wage discrimination that builds on the methodology first developed by Hellerstein and Neumark (1999). The author’s method has three main advantages: It is robust to labor market segregation, it does not impose linearity on the wage-setting equation, and it is not only a test for discrimination but also produces a measure of discrimination. Using matched employer-employee data from Germany, the author finds that immigrants are being discriminated against. They receive wages that are 13% lower than native workers in the same firm.

Suggested Citation

  • Cristian Bartolucci, 2014. "Understanding the Native–Immigrant Wage Gap Using Matched Employer-Employee Data," ILR Review, Cornell University, ILR School, vol. 67(4), pages 1166-1202, October.
    • Handle: RePEc:sae:ilrrev:v:67:y:2014:i:4:p:1166-1202
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