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Immigrant-Native Wage Gaps over Two Generations: Does the Field of Study Matter?

Author

Listed:
  • Pineda-Hernandez, Kevin

    (Free University of Brussels)

  • Rycx, François

    (Free University of Brussels)

  • Senterre, Thomas

    (ULB and UMONS)

  • Volral, Melanie

    (UMONS)

Abstract

Although educational attainment is known to moderate immigrant-native wage gaps, the role of the field of study remains largely unexplored. Drawing on detailed data for master's graduates in Belgium (1999-2016), we show that the immigrant-native wage gap narrows over two generations but persists in higher-paying fields (STEM, LEM), while disappearing in lower-paying ones. Wage decompositions reveal a small positive quantity effect (immigrants favour higher-paying fields), outweighed by a negative price effect (as returns to fields are lower for immigrants). This price effect halves across generations. Together, both effects explain 28-37% of the overall pay gap. Sensitivity tests refine these findings.

Suggested Citation

  • Pineda-Hernandez, Kevin & Rycx, François & Senterre, Thomas & Volral, Melanie, 2026. "Immigrant-Native Wage Gaps over Two Generations: Does the Field of Study Matter?," IZA Discussion Papers 18728, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18728
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    Keywords

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    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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