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Wage Differentials between Native and Immigrant Women in Spain: Accounting for Differences in the Supports

Author

Listed:
  • Nicodemo, Catia

    (University of Oxford)

  • Ramos, Raul

    (University of Barcelona)

Abstract

The objective of the study is to quantify the wage gap between native and immigrant women in Spain taking into account differences in their characteristics and the need to control for common support. Using the microdata from the Social Security Records (MCVL) and with a matching procedure of Ñopo (2008) we analysed the decomposition of the wage gap. The advantage of this procedure is that we can simultaneously estimate the common support and the mean counterfactual wage for the women on the common support. In addition, we can describe not only differences at the mean, but along the entire wage distribution. The results obtained indicate that, on average, immigrants women earn less than native in the Spanish labour market. This wage gap is bigger when we analyse the developing countries, but our main finding is that part of this wage gap is related to difference in common supports, i.e. immigrant women have different characteristics than native women that make them less attractive in the labour market. If the need to control for common support is neglected, estimates of the wage gap will be biased.

Suggested Citation

  • Nicodemo, Catia & Ramos, Raul, 2011. "Wage Differentials between Native and Immigrant Women in Spain: Accounting for Differences in the Supports," IZA Discussion Papers 5571, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5571
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    References listed on IDEAS

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    1. José-Ignacio Antón & Rafael Muñoz de Bustillo & Miguel Carrera, 2012. "Raining stones? Female immigrants in the Spanish labour market," Estudios de Economia, University of Chile, Department of Economics, vol. 39(1 Year 20), pages 53-86, June.
    2. Hipólito Simón & Esteban Sanromá & Raúl Ramos, 2008. "Labour segregation and immigrant and native-born wage distributions in Spain: an analysis using matched employer–employee data," Spanish Economic Review, Springer;Spanish Economic Association, vol. 10(2), pages 135-168, June.
    3. Alicia Adsera & Barry Chiswick, 2007. "Are there gender and country of origin differences in immigrant labor market outcomes across European destinations?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(3), pages 495-526, July.
    4. José‐Ignacio Antón & Rafael Muñoz de Bustillo & Miguel Carrera, 2010. "From guests to hosts: immigrant‐native wage differentials in Spain," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(6), pages 645-659, September.
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    Cited by:

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    2. Carl Lin, 2016. "How Do Immigrants From Taiwan Fare In The U.S. Labor Market?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(05), pages 1-38, December.
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    5. Tiiu Paas & Maryna Tverdostup, 2016. "Assessment of labour market returns in the case of gender unique human capital," ERSA conference papers ersa16p157, European Regional Science Association.

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    More about this item

    Keywords

    counterfactual decomposition; quantile regression; immigration; common support;
    All these keywords.

    JEL classification:

    • 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
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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