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Immigrant Wage Differentials, Ethnicity and Occupational Clustering

  • Robert Elliott
  • Joanne Kathryn Lindley

    ()

    (Department of Economics, The University of Sheffield)

The economic performance and a related discussion on the existence, or otherwise, of racial discrimination in the UK labour market for migrants and ethnic minorities are of great interest to policymakers. In this paper we investigate the concept of occupational clustering as an explanation for the relatively poor earnings performance of non-white migrants and non-white natives. Although occupational clustering and other human capital and socio-economic factors provide a partial explanation for the raw earnings differential, evidence of ethnic based disadvantage persists.

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Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2006008.

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Length: 27 pages
Date of creation: May 2006
Date of revision: May 2006
Handle: RePEc:shf:wpaper:2006008
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  1. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-95, October.
  2. Axel Dreher & Panu Poutvaara, 2006. "Student Flows and Migration: An Empirical Analysis," KOF Working papers 06-142, KOF Swiss Economic Institute, ETH Zurich.
  3. Yatchew,Adonis, 2003. "Semiparametric Regression for the Applied Econometrician," Cambridge Books, Cambridge University Press, number 9780521012263.
  4. Timothy J. Hatton & Jeffrey G. Williamson, 2002. "What Fundamentals Drive World Migration?," NBER Working Papers 9159, National Bureau of Economic Research, Inc.
  5. Bell, Brian D, 1997. "The Performance of Immigrants in the United Kingdom: Evidence from the GHS," Economic Journal, Royal Economic Society, vol. 107(441), pages 333-44, March.
  6. Dolton, Peter & Vignoles, Anna, 2000. "The incidence and effects of overeducation in the U.K. graduate labour market," Economics of Education Review, Elsevier, vol. 19(2), pages 179-198, April.
  7. Leslie, Derek & Lindley, Joanne, 2001. "The Impact of Language Ability on Employment and Earnings of Britain's Ethnic Communities," Economica, London School of Economics and Political Science, vol. 68(272), pages 587-606, November.
  8. Hartog, Joop, 2000. "Over-education and earnings: where are we, where should we go?," Economics of Education Review, Elsevier, vol. 19(2), pages 131-147, April.
  9. Christian Dustmann & Francesca Fabbri, 2003. "Language proficiency and labour market performance of immigrants in the UK," Economic Journal, Royal Economic Society, vol. 113(489), pages 695-717, 07.
  10. Bob Anderton, 1997. "UK Labour Market Reforms and Sectoral Wage Formation," NIESR Discussion Papers 216, National Institute of Economic and Social Research.
  11. Battu, Harminder & Sloane, Peter J., 2002. "Overeducation and Ethnic Minorities in Britain," IZA Discussion Papers 650, Institute for the Study of Labor (IZA).
  12. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  13. Storesletten, Kjetil, 2001. "Fiscal Implications of Immigration - A Net Present Value Calculation -," Seminar Papers 701, Stockholm University, Institute for International Economic Studies.
  14. 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.
  15. Michael Shields & Stephen Wheatley Price, 1998. "The earnings of male immigrants in England: evidence from the quarterly LFS," Applied Economics, Taylor & Francis Journals, vol. 30(9), pages 1157-1168.
  16. Chiswick, Barry R, 1980. "The Earnings of White and Coloured Male Immigrants in Britain," Economica, London School of Economics and Political Science, vol. 47(185), pages 81-87, February.
  17. P. J. Sloane & H. Battu & P. T. Seaman, 1999. "Overeducation, undereducation and the British labour market," Applied Economics, Taylor & Francis Journals, vol. 31(11), pages 1437-1453.
  18. Myeong-Su Yun, 2005. "A Simple Solution to the Identification Problem in Detailed Wage Decompositions," Economic Inquiry, Western Economic Association International, vol. 43(4), pages 766-772, October.
  19. Chiswick, Barry R. & Hatton, Timothy J., 2002. "International Migration and the Integration of Labor Markets," IZA Discussion Papers 559, Institute for the Study of Labor (IZA).
  20. Axel Heitmueller, 2003. "Co-ordination Failures in Network Migration," CERT Discussion Papers 0302, Centre for Economic Reform and Transformation, Heriot Watt University.
  21. Ira N. Gang & Thomas Bauer & Gil S. Epstein, 2002. "Herd Effects or Migration Networks? The Location Choice of Mexican Immigrants in the U.S," Departmental Working Papers 200216, Rutgers University, Department of Economics.
  22. 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.
  23. George J. Borjas, 1998. "Immigration and Welfare Magnets," NBER Working Papers 6813, National Bureau of Economic Research, Inc.
  24. 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 463-89, October.
  25. Constant, Amelie F. & Massey, Douglas S., 2003. "Labor Market Segmentation and the Earnings of German Guestworkers," IZA Discussion Papers 774, Institute for the Study of Labor (IZA).
  26. 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.
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