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

  • Helena Skyt Nielsen

    ()

  • Michael Rosholm

    ()

  • Nina Smith

    ()

  • Leif Husted

    ()

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

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File URL: http://hdl.handle.net/10.1007/s00181-004-0221-9
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Article provided by Springer in its journal Empirical Economics.

Volume (Year): 29 (2004)
Issue (Month): 4 (December)
Pages: 855-883

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Handle: RePEc:spr:empeco:v:29:y:2004:i:4:p:855-883
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  1. Husted, L. & Nielsen, H.S. & Rosholm, M. & Smith, N., 2000. "Employment and Wage Assimilation of Male First Generation Immigrants in Denmark," Papers 00-01, Centre for Labour Market and Social Research, Danmark-.
  2. Ekaterini Kyriazidou, 1997. "Estimation of a Panel Data Sample Selection Model," Econometrica, Econometric Society, vol. 65(6), pages 1335-1364, November.
  3. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-53, September.
  4. Coate, Stephen & Loury, Glenn C, 1993. "Will Affirmative-Action Policies Eliminate Negative Stereotypes?," American Economic Review, American Economic Association, vol. 83(5), pages 1220-40, December.
  5. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
  6. Long, James E, 1980. "The Effect of Americanization on Earnings: Some Evidence for Women," Journal of Political Economy, University of Chicago Press, vol. 88(3), pages 620-29, June.
  7. Joseph G. Altonji & Rebecca M. Blank, . "Race and Gender in the Labor Market," IPR working papers 98-18, Institute for Policy Resarch at Northwestern University.
  8. Jensen, Peter & Rosholm, Michael & Verner, Mette, 2002. "A Comparison of Different Estimators for Panel Data Sample Selection Models," Working Papers 02-1, University of Aarhus, Aarhus School of Business, Department of Economics.
  9. Abul Shamsuddin, 1998. "Thedouble-negativeeffect onthe earnings of foreign-born females in Canada," Applied Economics, Taylor & Francis Journals, vol. 30(9), pages 1187-1201.
  10. Francis Vella, 1998. "Estimating Models with Sample Selection Bias: A Survey," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 127-169.
  11. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
  12. Dustmann, Christian & Rochina-Barrachina, María Engracia, 2000. "Selection Correction in Panel Data Models: An Application to Labour Supply and Wages," IZA Discussion Papers 162, Institute for the Study of Labor (IZA).
  13. Oettinger, Gerald S, 1996. "Statistical Discrimination and the Early Career Evolution of the Black-White Wage Gap," Journal of Labor Economics, University of Chicago Press, vol. 14(1), pages 52-78, January.
  14. Worswick, C. & Beach, C.M., 1990. "Is There a Double-Negative Effect on the Earnings of Immigrant Women?," Papers 1990-6, Queen's at Kingston - Sch. of Indus. Relat. Papers in Industrial Relations.
  15. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
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