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Wage discrimination against immigrants in Austria?


  • 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.

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

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    References listed on IDEAS

    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. 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.
    3. 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.
    4. 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.
    5. 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.
    6. Jahn, Elke & Hirsch, Boris, 2012. "Is there monopsonistic discrimination against immigrants? First evidence from linked employer employee data," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 65417, Verein für Socialpolitik / German Economic Association.
    7. 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.
    8. 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.
    9. repec:iab:iabjlr:v:46:i:1:p:19-34 is not listed on IDEAS
    10. 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.
    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.
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    Cited by:

    1. 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).
    2. 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.

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