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Wage discrimination against immigrants in Austria?

Listed author(s):
  • Helmut Hofer
  • Gerlinde Titelbach
  • Rudolf Winter-Ebmer

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.

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File URL: http://www.econ.jku.at/papers/2014/wp1406.pdf
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Paper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2014-06.

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Length: 22 pages
Date of creation: Jun 2014
Handle: RePEc:jku:econwp:2014_06
Contact details of provider: Fax: +43 732-2468-8238
Web page: http://www.econ.jku.at/

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  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. Hirsch, Boris & Jahn, Elke J., 2012. "Is There Monopsonistic Discrimination against Immigrants? First Evidence from Linked Employer-Employee Data," IZA Discussion Papers 6472, Institute for the Study of Labor (IZA).
  3. repec:iab:iabjlr:v:46:i:1:p:19-34 is not listed on IDEAS
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. 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.
  12. repec:spr:testjl:v:46:y:2013:i:1:p:19-34 is not listed on IDEAS
  13. 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.
  14. Florian Lehmer & Johannes Ludsteck, 2011. "The Immigrant Wage Gap in Germany: Are East Europeans Worse Off?," ERSA conference papers ersa10p769, European Regional Science Association.
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