Decomposing immigrant wage assimilation - the role of workplaces and occupations

Tove Eliasson ()
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Tove Eliasson: Department of Economics, Uppsala University, Postal: P O Box 513, SE-751 20 Uppsala, Sweden

No 2013:7, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: This article uses a matched employer-employee panel data of the Swedish labor market to study immigrant wage assimilation, decomposing the wage catch-up into parts which can be attributed to relative wage growth within and between workplaces and occupations. This study shows that failing to control for selection into employment when studying wage assimilation of immigrants is very likely to under-estimate wage catch-up. The results further show that both poorly and highly educated immigrants catch up through relative wage growth within workplaces and occupations, suggesting that employer-specic learning plays an important role for the wage catch-up. The highly educated suffers from not benefiting from occupational mobility as much as the natives do. This could be interpreted as a lack of access to the full range of occupations, possibly explained by difficulties in signaling specific skills.

Keywords: Firm sorting; occupational mobility; wage assimilation; host country specific human capital; employer learning (search for similar items in EconPapers)
JEL-codes: D22 D31 J01 J31 J71 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2013-03-14
New Economics Papers: this item is included in nep-fdg, nep-lab, nep-lma and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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