Qualifications, Discrimination, or Assimilation? An Extended Framework for Analysing Immigrant Wage Gaps
Helena Skyt Nielsen
University of Aarhus - Business and Social Sciences; Institute for the Study of Labor (IZA)
University of Aarhus - Department of Economics; Institute for the Study of Labor (IZA); Amternes og Kommunernes Forskningsinstitut (AKF)
University of Aarhus - Department of Economics; Institute for the Study of Labor (IZA)
Institute of Local Government Studies
IZA Discussion Paper No. 365
In this paper, we analyze immigrant wage gaps and propose an extension of the traditional wage decomposition technique, which is a synthesis from two strains of literature on ethnic/immigrant wage differences, namely the "assimilation literature" and the "discrimination literature". We estimate separate wage equations for natives and a number of immigrant groups using panel data sample selection models. Based on the estimations, we find that the immigrant wage gap is caused by a lack of qualifications and incomplete assimilation, and that a large fraction of that gap would disappear if only immigrants could find employment and thus accumulate work experience.
Number of Pages in PDF File: 41
Keywords: Wage Assimilation, Immigrants, Wage Gap, Panel Data Sample Selection Model
JEL Classification: J15, J16, J31, J71working papers series
Date posted: September 27, 2001
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