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Wage discrimination against immigrants: Measurement with firm-level productivity data

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  • Stephan Kampelmann
  • François Rycx

Abstract

This paper is one of the first to use employer-employee data on wages and labor productivity to measure discrimination against immigrants. We build on an identification strategy proposed by Bartolucci (2014) and address firm fixed effects and endogeneity issues through a diff GMM-IV estimator. Our models also test for gender-based discrimination. Empirical results for Belgium suggest significant wage discrimination against women and (to a lesser extent) against immigrants. We find no evidence for double discrimination against female immigrants. Institutional factors such as firm-level collective bargaining and smaller firm sizes are found to attenuate wage discrimination against foreigners, but not against women.

Suggested Citation

  • Stephan Kampelmann & François Rycx, 2016. "Wage discrimination against immigrants: Measurement with firm-level productivity data," Working Papers CEB 16-038, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:sol:wpaper:2013/235209
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    References listed on IDEAS

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    Cited by:

    1. Grinza, Elena & Kampelmann, Stephan & Rycx, Francois, 2018. "L'union fait la force? Evidence for Wage Discrimination in Firms with High Diversity," IZA Discussion Papers 11520, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    wages; productivity; discrimination; workers' origin; gender; inked employer-employee panel data;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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