Skin Color, Immigrant Wages, and Discrimination
Vanderbilt University - Law School; Vanderbilt University - Owen Graduate School of Management; Vanderbilt University - College of Arts and Science - Department of Economics; Institute for the Study of Labor (IZA)
June 20, 2008
Vanderbilt Law and Economics Research Paper No. 08-17
Appears in: Racism in the 21st Century: An Empirical Analysis of Skin Color, Ronald E. Hall., ed., Springer, 2008
Immigrant workers with darker skin color have lower pay than their counterparts with lighter skin color. Whether this pay penalty is due to labor market discrimination is explored using data from the New Immigrant Survey 2003 to estimate wage equations that control for skin color, sequentially taking into account a series of individual characteristics related to labor market productivity and personal background. These characteristics include Hispanic ethnicity, race, country of birth, education, family background, occupation in source country, English language proficiency, visa status, employer characteristics, and current occupation. The analysis finds that the labor market penalty to darker skin color cannot be attributed to differences in productivity and is evidence of labor market discrimination that arises within the U.S. labor market. The largest groups of post-1965 immigrants - those from Asia and Latin America - are penalized in the U.S. labor market for their darker skin color.
Number of Pages in PDF File: 24
Keywords: skin color discrimination, immigrants, immigrant workers
JEL Classification: J71, J61
Date posted: June 24, 2008 ; Last revised: January 28, 2009
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