Occupational Sorting and Wage Gaps of Refugees

62 Pages Posted: 29 Jun 2020

See all articles by Kit Baum

Kit Baum

Boston College

Hans Lööf

Royal Institute of Technology (KTH)

Andreas Stephan

Jonkoping University, Jonkoping International Business School

Klaus F. Zimmermann

Global Labor Organization (GLO); UNU-MERIT; Maastricht University, Department of Economics; Free University Berlin; University of Bonn; Centre for Economic Policy Research (CEPR); Journal of Population Economics

Date Written: June 2020

Abstract

Refugee workers start low and adjust slowly to the wages of comparable natives. The innovative approach in this study using unique Swedish employer-employee data shows that the observed wage gap between established refugees and comparable natives is mainly caused by occupational sorting into cognitive and manual tasks. Within occupations, it can be largely explained by differences in work experience. The identification strategy relies on a control group of matched natives with the same characteristics as the refugees, using panel data for 2003-2013 to capture unobserved heterogeneity.

Keywords: Blinder-Oaxaca decomposition, coarsened exact matching, correlated random effects model, Employer-employee data, Refugees, wage earnings gap

JEL Classification: C23, F22, J24, J6, O15

Suggested Citation

Baum, Kit and Loof, Hans and Stephan, Andreas and Zimmermann, Klaus F., Occupational Sorting and Wage Gaps of Refugees (June 2020). CEPR Discussion Paper No. DP14917, Available at SSRN: https://ssrn.com/abstract=3638021

Kit Baum (Contact Author)

Boston College ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

Hans Loof

Royal Institute of Technology (KTH) ( email )

Lindstedtsvägen 30-100 44
Stockholm, SE-100 44
Sweden

Andreas Stephan

Jonkoping University, Jonkoping International Business School ( email )

SE-551 11 Jonkoping
Sweden
55111 (Fax)

Klaus F. Zimmermann

Global Labor Organization (GLO) ( email )

Bonn
Germany

HOME PAGE: http://https://glabor.org/

UNU-MERIT ( email )

Keizer Karelplein 19
Maastricht, 6211TC
Netherlands

Maastricht University, Department of Economics ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

University of Bonn

Postfach 2220
Bonn, D-53012
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Journal of Population Economics

Tiergartenstr. 17
D-69121 Heidelberg
Germany

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