Are immigrants so stuck to the floor that the ceiling is irrelevant?
In this paper, the immigrant-native wage differential is explained through quantile regression estimations. Using repeated cross-sections of the British Labour Force Survey from 1993-2005, we analyse the returns to covariates across the conditional earnings distribution. We estimate a pooled model with an immigrant dummy and separate models for immigrants and natives of the UK. Our results show that the positive wage gap in favour of immigrants is attributed to those at higher quantiles. Returns to education and experience vary wider for natives than for immigrants. We decompose the wage gap in the Blinder-Oaxaca framework and apply quantile regression techniques to see if immigrants simply have more viable labour market characteristics than natives or if there is a preference for immigrant workers (reverse discrimination). Our findings suggest immigrants should actually be earning more and there is sufficient evidence of discrimination. This finding is, however, not symmetric across the conditional wage distribution and immigrants atthe bottom face more discrimination than those at the top.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +44 (0) 2476 523202
Fax: +44 (0) 2476 523032
Web page: http://www2.warwick.ac.uk/fac/soc/economics/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ronald Oaxaca, 1971.
"Male-Female Wage Differentials in Urban Labor Markets,"
396, Princeton University, Department of Economics, Industrial Relations Section..
- 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.
- Chiswick, Barry R. & Le, Anh T. & Miller, Paul W., 2006. "How Immigrants Fare Across the Earnings Distribution: International Analyses," IZA Discussion Papers 2405, Institute for the Study of Labor (IZA).
- José Ferreira Machado & José Mata, 1998.
"Earning Functions in Portugal 1982-1994: Evidence From Quantile Regressions,"
w199802, Banco de Portugal, Economics and Research Department.
- José A. F. Machado & José Mata, 2001. "Earning functions in Portugal 1982-1994: Evidence from quantile regressions," Empirical Economics, Springer, vol. 26(1), pages 115-134.
- Colm Harmon & Ian Walker, 1995. "Estimates of the economic return to schooling for the United Kingdom," Open Access publications 10197/647, School of Economics, University College Dublin.
- Green, Francis & Machin, Stephen & Wilkinson, David, 1998. "The Meaning and Determinants of Skills Shortages," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(2), pages 165-87, May.
- Gianmarco I.P. Ottaviano & Giovanni Peri, 2005.
"Rethinking the Gains from Immigration: Theory and Evidence from the U.S,"
NBER Working Papers
11672, National Bureau of Economic Research, Inc.
- Ottaviano, Gianmarco & Peri, Giovanni, 2005. "Rethinking the Gains from Immigration: Theory and Evidence from the US," CEPR Discussion Papers 5226, C.E.P.R. Discussion Papers.
- Gianmarco I.P. Ottaviano & Giovanni Peri, 2006. "Rethinking the Gains from Immigration: Theory and Evidence from the U.S," Working Papers 2006.52, Fondazione Eni Enrico Mattei.
- Giovanni Peri & Gianmarco I.P. Ottaviano, 2005. "Rethinking the Gains from Immigration: Theory and Evidence from the U.S," Working Papers 58, University of California, Davis, Department of Economics.
- Borjas, George J, 1987.
"Self-Selection and the Earnings of Immigrants,"
American Economic Review,
American Economic Association, vol. 77(4), pages 531-53, September.
- Albrecht, James & Björklund, Anders & Vroman, Susan, 2001.
"Is There a Glass Ceiling in Sweden?,"
IZA Discussion Papers
282, Institute for the Study of Labor (IZA).
- Lee, Sokbae, 2007.
"Endogeneity in quantile regression models: A control function approach,"
Journal of Econometrics,
Elsevier, vol. 141(2), pages 1131-1158, December.
- Sokbae Lee, 2004. "Endogeneity in Quantile Regression Models: A Control Function Approach," Econometric Society 2004 North American Summer Meetings 521, Econometric Society.
- Sokbae Lee, 2004. "Endogeneity in quantile regression models: a control function approach," CeMMAP working papers CWP08/04, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Melly, Blaise, 2005. "Decomposition of differences in distribution using quantile regression," Labour Economics, Elsevier, vol. 12(4), pages 577-590, August.
- Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
- Ronald L. Oaxaca & Michael R. Ransom, 1999. "Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 154-157, February.
- Hurst, Michael E. & Chiswick, Barry R., 2000. "The Employment, Unemployment and Unemployment Compensation Benefits of Immigrants," IZA Discussion Papers 129, Institute for the Study of Labor (IZA).
- Kristin F. Butcher & John DiNardo, 2002.
"The Immigrant and native-born wage distributions: Evidence from United States censuses,"
Industrial and Labor Relations Review,
ILR Review, Cornell University, ILR School, vol. 56(1), pages 97-121, October.
- Kristin F. Butcher & John Dinardo, 2002. "The Immigrant and Native-Born Wage Distributions: Evidence from United States Censuses," ILR Review, Cornell University, ILR School, vol. 56(1), pages 97-121, October.
- Kristin F. Butcher & John DiNardo, 1998. "The Immigrant and Native-born Wage Distributions: Evidence from United States Censuses," NBER Working Papers 6630, National Bureau of Economic Research, Inc.
- 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.
- 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.
- Clark, Ken & Lindley, Joanne, 2006. "Immigrant Labour Market Assimilation and Arrival Effects: Evidence from the UK Labour Force Survey," IZA Discussion Papers 2228, Institute for the Study of Labor (IZA).
- Harmon, Colm & Walker, Ian, 1995. "Estimates of the Economic Return to Schooling for the United Kingdom," American Economic Review, American Economic Association, vol. 85(5), pages 1278-86, December.
When requesting a correction, please mention this item's handle: RePEc:wrk:warwec:838. 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: (Helen Neal)
If references are entirely missing, you can add them using this form.