The Effect of Host Society Culture on Migrant Wage Discrimination: Approaching the Roestigraben
This paper investigates whether host society culture affects migrant wage discrimination, i.e. whether migrant wage discrimination is more intense in host societies where culture is more inward-looking. The motivation for this investigation in the Swiss context stems from two stylized facts showing that (i) political preferences on issues related to migration, asylum and naturalization of foreigners are markedly more conservative in the German region and (ii) that average wage differences between migrants and natives are larger in the German region. Building on this, the paper begins with a comparison of returns to factors (for eight migrant groups compared to natives) using a human capital model of wage determination. It then performs an Oaxaca decomposition of wage differentials in order to compare its unexplained component across groups and regions. The last step consists in implementing a regression discontinuity design approach to establish whether host society culture is one of the determinants explaining differences in migrant wage discrimination across the language border. Results show returns to factors of wage-earning migrants are lower in the German region for a preponderant majority of migrant groups. The analysis of wage differentials and the associated unexplained parts also support the hypothesis that wage discrimination is more pronounced in this region of the Swiss labor market. Finally, results of the regression discontinuity design approach confirm that host society culture is one of the determinants of wage discrimination endured by migrants.
|Date of creation:||22 Apr 2012|
|Date of revision:|
|Contact details of provider:|| Postal: P.O. Box 36, 1211 Geneva 21|
Phone: ++41 22 731 17 30
Fax: ++41 22 738 43 06
Web page: http://www.graduateinstitute.ch/economics
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sáez-Martı´, Maria & Zenou, Yves, 2012.
"Cultural transmission and discrimination,"
Journal of Urban Economics,
Elsevier, vol. 72(2), pages 137-146.
- Maria Sï¿½ez-Martï¿½ & Yves Zenou, 2007. "Cultural transmission and discrimination," IEW - Working Papers 348, Institute for Empirical Research in Economics - University of Zurich, revised Apr 2012.
- Saez-Marti, Maria & Zenou, Yves, 2005. "Cultural Transmission and Discrimination," IZA Discussion Papers 1880, Institute for the Study of Labor (IZA).
- Sáez-Martí, Maria & Zenou, Yves, 2010. "Cultural Transmission and Discrimination," CEPR Discussion Papers 7622, C.E.P.R. Discussion Papers.
- Erik Lindqvist & Robert Östling, 2013.
"Identity and redistribution,"
Springer, vol. 155(3), pages 469-491, June.
- Lindqvist, Erik & Östling, Robert, 2006. "Identity and Redistribution," SSE/EFI Working Paper Series in Economics and Finance 659, Stockholm School of Economics, revised 12 Jun 2007.
- Lindqvist, Erik, 2008. "Identity and Redistribution," Working Paper Series 735, Research Institute of Industrial Economics.
- Brügger, Beatrix & Lalive, Rafael & Zweimüller, Josef, 2009.
"Does Culture Affect Unemployment? Evidence from the Röstigraben,"
IZA Discussion Papers
4283, Institute for the Study of Labor (IZA).
- Brügger, Beatrix & Lalive, Rafael & Zweimüller, Josef, 2009. "Does Culture Affect Unemployment? Evidence from the Röstigraben," CEPR Discussion Papers 7405, C.E.P.R. Discussion Papers.
- Beatrix Brügger & Rafael Lalive & Josef Zweimüller, 2009. "Does Culture Affect Unemployment? Evidence from the Röstigraben," NRN working papers 2009-10, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
- Beatrix Brügger & Rafael Lalive & Josef Zweimüller, 2009. "Does Culture Affect Unemployment? Evidence from the Röstigraben," CESifo Working Paper Series 2714, CESifo Group Munich.
- Neuman, Shoshana & Oaxaca, Ronald L, 2004. "Wage Differentials in the 1990s in Israel: Endowments, Discrimination and Selectivity," CEPR Discussion Papers 4709, C.E.P.R. Discussion Papers.
- Philipp Bauer & Regina Riphahn, 2007.
"Heterogeneity in the intergenerational transmission of educational attainment: evidence from Switzerland on natives and second-generation immigrants,"
Journal of Population Economics,
Springer;European Society for Population Economics, vol. 20(1), pages 121-148, February.
- Bauer, Philipp C. & Riphahn, Regina T., 2004. "Heterogeneity in the Intergenerational Transmission of Educational Attainment: Evidence from Switzerland on Natives and Second Generation Immigrants," IZA Discussion Papers 1354, Institute for the Study of Labor (IZA).
- Chiswick, Barry R. & Le, Anh T. & Miller, Paul W., 2006. "How Immigrants Fare Across the Earnings Distribution: International Analyses," IZA Discussion Papers 2405, Institute for the Study of Labor (IZA).
- Alfonso Sousa-Poza, 2004. "Is the Swiss Labor Market Segmented? An Analysis Using Alternative Approaches," LABOUR, CEIS, vol. 18(1), pages 131-161, 03.
- Klor, Esteban F & Shayo, Moses, 2007.
"Social Identity and Preferences over Redistribution,"
CEPR Discussion Papers
6406, C.E.P.R. Discussion Papers.
- Klor, Esteban F. & Shayo, Moses, 2010. "Social identity and preferences over redistribution," Journal of Public Economics, Elsevier, vol. 94(3-4), pages 269-278, April.
- Imbens, Guido W. & Lemieux, Thomas, 2008.
"Regression discontinuity designs: A guide to practice,"
Journal of Econometrics,
Elsevier, vol. 142(2), pages 615-635, February.
- Guido Imbens & Thomas Lemieux, 2007. "Regression Discontinuity Designs: A Guide to Practice," NBER Working Papers 13039, National Bureau of Economic Research, Inc.
- Guido Imbens & Thomas Lemieux, 2007. "Regression Discontinuity Designs: A Guide to Practice," NBER Technical Working Papers 0337, National Bureau of Economic Research, Inc.
- James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
- Robert Elliott & Joanne Kathryn Lindley, 2006. "Immigrant Wage Differentials, Ethnicity and Occupational Clustering," Working Papers 2006008, The University of Sheffield, Department of Economics, revised May 2006.
- Augustin de Coulon, 2001. "Wage Differentials between Ethnic Groups in Switzerland," LABOUR, CEIS, vol. 15(1), pages 111-132, 03.
- Buti,Marco & Deroose,Servaas & Gaspar,Vitor & Martins,João Nogueira (ed.), 2010. "The Euro," Cambridge Books, Cambridge University Press, number 9789279098420, June.
When requesting a correction, please mention this item's handle: RePEc:gii:giihei:heidwp08-2012. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rahul Mehrotra)
If references are entirely missing, you can add them using this form.