Is there monopsonistic discrimination against immigrants? First evidence from linked employer employee data
This paper investigates immigrants and natives labour supply to the firm within a semi-structural approach based on a dynamic monopsony framework. Applying duration models to a large administrative employer employee data set for Germany, we find that once accounting for unobserved worker heterogeneity immigrants supply labour less elastically to firms than natives. Under monopsonistic wage setting the estimated elasticity differential predicts a 4.6 log points wage penalty for immigrants thereby accounting for almost the entire unexplained native immigrant wage differential of 2.9 5.9 log points. Our results imply that discriminating against immigrants is profitable rather than costly.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.socialpolitik.org/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:zbw:vfsc12:65417. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.