IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Native-Migrant Differences in Trading Off Wages and Workplace Safety

Listed author(s):
  • D’Ambrosio, Anna

    ()

    (University of Turin)

  • Leombruni, Roberto

    ()

    (University of Turin)

  • Razzolini, Tiziano

    ()

    (University of Siena)

Registered author(s):

    Applying propensity score reweighting to Italian administrative data covering the period 1994-2012, we study the conditional distributions of injuries by wage of native and foreign workers and distinguish between the component that is explained by observable characteristics and the component that is instead attributable to the immigrant status. Our analyses highlight some stylized facts. Besides a substantial gap in wage and injury risk that cannot be attributed to differences in the characteristics, foreign workers face higher levels of risk by the same level of wages. The gap is significantly above the level predicted by their observable characteristics by remunerations that are close to the minimum wage level set by collective bargaining. After this threshold, injury rates decline, but less steeply for foreign workers than their observable characteristics would predict. We show that the hedonic wage model could explain the first result as a corner solution whereby workers with low wage potential are forced to accept higher levels of risk due to the lower bounds on minimum wage. The second results could simply be explained by assuming different utility functions for natives and foreigners. We also show that the hedonic wage model is compatible with the marked reduction in injury rates and in the gap that we observe in the recession years.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://ftp.iza.org/dp10523.pdf
    Download Restriction: no

    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 10523.

    as
    in new window

    Length: 52 pages
    Date of creation: Jan 2017
    Handle: RePEc:iza:izadps:dp10523
    Contact details of provider: Postal:
    IZA, P.O. Box 7240, D-53072 Bonn, Germany

    Phone: +49 228 3894 223
    Fax: +49 228 3894 180
    Web page: http://www.iza.org

    Order Information: Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
    Email:


    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.:

    as
    in new window


    1. Martin Biewen, 2001. "Measuring the Effects of Socio-Economic Variables on the Income Distribution: An Application to the East German Transition Process," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 185-190, February.
    2. Alberto Dávila & Marie T. Mora & Rebecca González, 2011. "English-Language Proficiency and Occupational Risk Among Hispanic Immigrant Men in the United States," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(2), pages 263-296, 04.
    3. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
    4. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 605-654.
    5. David Card & Francesco Devicienti & Agata Maida, 2014. "Rent-sharing, Holdup, and Wages: Evidence from Matched Panel Data," Review of Economic Studies, Oxford University Press, vol. 81(1), pages 84-111.
    6. Pia Orrenius & Madeline Zavodny, 2009. "Do immigrants work in riskier jobs?," Demography, Springer;Population Association of America (PAA), vol. 46(3), pages 535-551, August.
    7. Daniel S. Hamermesh, 1999. "Changing Inequality in Markets for Workplace Amenities," The Quarterly Journal of Economics, Oxford University Press, vol. 114(4), pages 1085-1123.
    8. Boone, Jan & van Ours, Jan C., 2006. "Are recessions good for workplace safety?," Journal of Health Economics, Elsevier, vol. 25(6), pages 1069-1093, November.
    9. Joni Hersch & W. Kip Viscusi, 2010. "Immigrant Status and the Value of Statistical Life," Journal of Human Resources, University of Wisconsin Press, vol. 45(3).
    10. Heather Antecol & Kelly Bedard, 2006. "Unhealthy assimilation: Why do immigrants converge to American health status levels?," Demography, Springer;Population Association of America (PAA), vol. 43(2), pages 337-360, May.
    11. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    12. Bauer, Thomas K. & Million, Andreas & Rotte, Ralph & Zimmermann, Klaus F., 1998. "Immigration Labor and Workplace Safety," IZA Discussion Papers 16, Institute for the Study of Labor (IZA).
    13. Keisuke Hirano & Guido W. Imbens & Geert Ridder, 2003. "Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score," Econometrica, Econometric Society, vol. 71(4), pages 1161-1189, 07.
    14. Falzoni, Anna M. & Venturini, Alessandra & Villosio, Claudia, 2004. "Wage Differentials and International Trade in Italy Using Individual Micro Data 1991-1996," IZA Discussion Papers 1204, Institute for the Study of Labor (IZA).
    15. Boone, Jan & van Ours, Jan C. & Wuellrich, Jean-Philippe & Zweimüller, Josef, 2011. "Recessions are bad for workplace safety," Journal of Health Economics, Elsevier, vol. 30(4), pages 764-773, July.
    16. Razzolini, Tiziano & Leombruni, Roberto & Mastrobuoni, Giovanni & Pagliero, Mario, 2014. "Beneath the surface: The decline in gender injury gap," Labour Economics, Elsevier, vol. 30(C), pages 282-288.
    17. Brunell, Thomas L. & DiNardo, John, 2004. "A Propensity Score Reweighting Approach to Estimating the Partisan Effects of Full Turnout in American Presidential Elections," Political Analysis, Cambridge University Press, vol. 12(01), pages 28-45, December.
    18. Holger Bonin & Amelie Constant & Konstantinos Tatsiramos & Klaus Zimmermann, 2009. "Native-migrant differences in risk attitudes," Applied Economics Letters, Taylor & Francis Journals, vol. 16(15), pages 1581-1586.
    19. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    20. Daniela Piazzalunga, 2015. "Is There a Double-Negative Effect? Gender and Ethnic Wage Differentials in Italy," LABOUR, CEIS, vol. 29(3), pages 243-269, 09.
    21. Leombruni, Roberto & Razzolini, Tiziano & Serti, Francesco, 2013. "The pecuniary and non-pecuniary costs of job displacement—The risky job of being back to work," European Economic Review, Elsevier, vol. 61(C), pages 205-216.
    22. Barsky R. & Bound J. & Charles K.K. & Lupton J.P., 2002. "Accounting for the Black-White Wealth Gap: A Nonparametric Approach," Journal of the American Statistical Association, American Statistical Association, vol. 97, pages 663-673, September.
    23. Biddle, Jeff E & Zarkin, Gary A, 1988. "Worker Preferences and Market Compensation for Job Risk," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 660-667, November.
    24. repec:ilo:ilowps:373470 is not listed on IDEAS
    25. James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," Review of Economic Studies, Oxford University Press, vol. 65(2), pages 261-294.
    26. Hashimoto, Masanori, 1982. "Minimum Wage Effects on Training on the Job," American Economic Review, American Economic Association, vol. 72(5), pages 1070-1087, December.
    27. Kakwani, Nanak & Wagstaff, Adam & van Doorslaer, Eddy, 1997. "Socioeconomic inequalities in health: Measurement, computation, and statistical inference," Journal of Econometrics, Elsevier, vol. 77(1), pages 87-103, March.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp10523. 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: (Mark Fallak)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.