IDEAS home Printed from https://ideas.repec.org/p/jku/econwp/2014_06.html
   My bibliography  Save this paper

Wage discrimination against immigrants in Austria?

Author

Listed:
  • Helmut Hofer
  • Gerlinde Titelbach
  • Rudolf Winter-Ebmer

Abstract

This paper analyses wage discrimination against immigrants in Austria using combined information from the labor force surveys and administrative social security data. We find that immigrants experience a wage disadvantage of 15 percentage points compared to natives. However, a substantial part of the wage gap can be explained by differences in human capital endowment and job position. Decomposition methods using quantile regressions show larger discrimination in the upper part of the wage distribution. Moreover, we do not find any evidence for wage assimilation of immigrants in Austria.

Suggested Citation

  • Helmut Hofer & Gerlinde Titelbach & Rudolf Winter-Ebmer, 2014. "Wage discrimination against immigrants in Austria?," Economics working papers 2014-06, Department of Economics, Johannes Kepler University Linz, Austria.
  • Handle: RePEc:jku:econwp:2014_06
    as

    Download full text from publisher

    File URL: http://www.econ.jku.at/papers/2014/wp1406.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Dustmann, Christian & Glitz, Albrecht & Vogel, Thorsten, 2010. "Employment, wages, and the economic cycle: Differences between immigrants and natives," European Economic Review, Elsevier, vol. 54(1), pages 1-17, January.
    2. Victor Chernozhukov & Iván Fernández‐Val & Blaise Melly, 2013. "Inference on Counterfactual Distributions," Econometrica, Econometric Society, vol. 81(6), pages 2205-2268, November.
    3. Butcher, Kristin F & Card, David, 1991. "Immigration and Wages: Evidence from the 1980's," American Economic Review, American Economic Association, vol. 81(2), pages 292-296, May.
    4. Hirsch, Boris & Jahn, Elke J., 2012. "Is there monopsonistic discrimination against immigrants? First evidence from linked employer-employee data," Discussion Papers 79, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    5. repec:iab:iabjlr:v:46:i:1:p:19-34 is not listed on IDEAS
    6. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
    7. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-489, October.
    8. Robert J. R. Elliott & Joanne K. Lindley, 2008. "Immigrant wage differentials, ethnicity and occupational segregation," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 171(3), pages 645-671.
    9. Sébastien Jean & Orsetta Causa & Miguel Jimenez & Isabelle Wanner, 2010. "Migration and labour market outcomes in OECD countries," OECD Journal: Economic Studies, OECD Publishing, vol. 2010(1), pages 1-34.
    10. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    11. repec:fth:prinin:*30a is not listed on IDEAS
    12. Helena Skyt Nielsen & Michael Rosholm & Nina Smith & Leif Husted, 2004. "Qualifications, discrimination, or assimilation? An extended framework for analysing immigrant wage gaps," Empirical Economics, Springer, vol. 29(4), pages 855-883, December.
    13. Zweimuller, J & Winter-Ebmer, R, 1994. "Gender Wage Differentials in Private and Public Sector Jobs," Journal of Population Economics, Springer;European Society for Population Economics, vol. 7(3), pages 271-285, July.
    14. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
    15. Kristin Butcher & David Card, 1991. "Immigration and Wages: Evidence From the 1980's," Working Papers 661, Princeton University, Department of Economics, Industrial Relations Section..
    16. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    17. Kenneth Arrow, 1971. "The Theory of Discrimination," Working Papers 403, Princeton University, Department of Economics, Industrial Relations Section..
    18. Böheim, René & Himpele, Klemens & Mahringer, Helmut & Zulehner, Christine, 2013. "The distribution of the gender wage gap in Austria : evidence from matched employer-employee data and tax records," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 46(1), pages 19-34.
    19. repec:spr:testjl:v:46:y:2013:i:1:p:19-34 is not listed on IDEAS
    20. Karolin Krause & Thomas Liebig, 2011. "The Labour Market Integration of Immigrants and their Children in Austria," OECD Social, Employment and Migration Working Papers 127, OECD Publishing.
    21. Thomas Grandner & Dieter Gstach, 2015. "Decomposing wage discrimination in Germany and Austria with counterfactual densities," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(1), pages 49-76, February.
    22. repec:pri:indrel:dsp014t64gn18f is not listed on IDEAS
    23. repec:fth:prinin:30a is not listed on IDEAS
    24. Florian Lehmer & Johannes Ludsteck, 2011. "The Immigrant Wage Gap in Germany: Are East Europeans Worse Off?," ERSA conference papers ersa10p769, European Regional Science Association.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:bla:germec:v:18:y:2017:i:2:p:237-265 is not listed on IDEAS
    2. Christl, Michael & Köppl-Turyna, Monika & Gnan, Phillipp, 2017. "Wage Differences Between Immigrants and Natives in Austria: The Role of Literacy Skills," GLO Discussion Paper Series 145, Global Labor Organization (GLO).
    3. Polyakova, Evgeniya & Smirnykh, Larisa, 2016. "The earning differential between natives and individuals with immigrant background in Russia: The role of ethnicity," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 43, pages 52-72.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jku:econwp:2014_06. 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: (René Böheim). General contact details of provider: http://edirc.repec.org/data/vlinzat.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.