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Qualifications, discrimination, or assimilation? An extended framework for analysing immigrant wage gaps

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  • Helena Skyt Nielsen
  • Michael Rosholm
  • Nina Smith
  • Leif Husted

Abstract

In this paper, we analyze immigrant wage gaps and propose an extension of the traditional wage decomposition technique, which is a synthesis from two strains of literature on ethnic/immigrant wage differences, namely the ‘assimilation literature’ and the ‘discrimination literature’. We estimate separate wage equations for natives and a number of immigrant groups using panel data sample selection models. Based on the estimations, we find that the immigrant wage gap is caused by a lack of qualifications and incomplete assimilation, and that a large fraction of that gap would disappear if only immigrants could find employment and thus accumulate work experience. Copyright Springer-Verlag 2004

Suggested Citation

  • Helena Skyt Nielsen & Michael Rosholm & Nina Smith & Leif Husted, 2004. "Qualifications, discrimination, or assimilation? An extended framework for analysing immigrant wage gaps," Empirical Economics, Springer, vol. 29(4), pages 855-883, December.
    • Handle: RePEc:spr:empeco:v:29:y:2004:i:4:p:855-883
    DOI: 10.1007/s00181-004-0221-9
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    5. Leif Husted & Helena Skyt Nielsen & Michael Rosholm & Nina Smith, 2001. "Employment and wage assimilation of male first‐generation immigrants in Denmark," International Journal of Manpower, Emerald Group Publishing Limited, vol. 22(1/2), pages 39-71, February.
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    More about this item

    Keywords

    Wage assimilation; immigrants; wage gap; panel data sample selection model; J15; J16; J31; J71;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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