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Wage Gaps between Native and Migrant Graduates of Higher Education Institutions in the Netherlands

Listed author(s):
  • Gheasi, Masood

    ()

    (Vrije Universiteit Amsterdam)

  • Nijkamp, Peter

    ()

    (Vrije Universiteit Amsterdam)

  • Rietveld, Piet

    (Vrije Universiteit Amsterdam)

In the Netherlands the share of immigrants in the total population has steadily increased in recent decades. The present paper takes a look at wage differences between natives and migrants who are equally educated. This reduces potential skills biases in our analysis. We apply a Mincer equation in estimating the wage differences between natives and migrants. In our study we analyze only young graduates, so that conventional human capital factors cannot explain the differences in monthly gross wages. Therefore, we focused on "otherness" factors, such as parents' roots to find an alternative explanation. Our empirical results show that acquiring Dutch human capital, Dutch-specific skills, language proficiency, and integration in the long-term (second-generation with non-OECD background) are not sufficient to overcome wage differences in the Dutch labor market, especially for migrants with parents from non-OECD countries.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 9353.

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Length: 24 pages
Date of creation: Sep 2015
Handle: RePEc:iza:izadps:dp9353
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  1. Yann Algan & Christian Dustmann & Albrecht Glitz & Alan Manning, 2010. "The Economic Situation of First and Second-Generation Immigrants in France, Germany and the United Kingdom," Economic Journal, Royal Economic Society, vol. 120(542), pages 4-30, 02.
  2. Simonetta LONGHI & Peter NIJKAMP & Jacques POOT, 2008. "Meta-Analysis Of Empirical Evidence On The Labour Market Impacts Of Immigration," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 27, pages 161-191.
  3. Friedberg, Rachel M, 2000. "You Can't Take It with You? Immigrant Assimilation and the Portability of Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 221-251, April.
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  9. Chiswick, Barry R, 1977. "Sons of Immigrants: Are They at an Earnings Disadvantage?," American Economic Review, American Economic Association, vol. 67(1), pages 376-380, February.
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  11. Bulow, Jeremy I & Summers, Lawrence H, 1986. "A Theory of Dual Labor Markets with Application to Industrial Policy,Discrimination, and Keynesian Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages 376-414, July.
  12. Yann Algan & Christian Dustmann & Albrecht Glitz & Allan Manning, 2010. "The Economic Situation of First ans Second-Generation in France, Germany, and the United Kingdom," Sciences Po publications info:hdl:2441/536kq4edtr8, Sciences Po.
  13. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
  14. Christian Dustmann & Francesca Fabbri & Ian Preston, 2005. "The Impact of Immigration on the UK Labour Market," CReAM Discussion Paper Series 0501, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  15. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, Enero-Jun.
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  17. Maria Abreu & Alessandra Faggian & Philip McCann, 2011. "Migration and inter-industry mobility of UK graduates: Effect on earnings and career satisfaction," ERSA conference papers ersa11p118, European Regional Science Association.
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