Firm productivity and immigrant-native earnings disparity

Olof Åslund (), Cristina Bratu, Stefano Lombardi and Anna Thoresson ()
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Olof Åslund: IFAU - Institute for Evaluation of Labour Market and Education Policy, Postal: Institute for Evaluation of Labour Market and Education Policy, P O Box 513, SE-751 20 Uppsala, Sweden
Anna Thoresson: IFAU - Institute for Evaluation of Labour Market and Education Policy, Postal: Institute for Evaluation of Labour Market and Education Policy, P O Box 513, SE-751 20 Uppsala, Sweden

No 2021:18, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: We study the role of firm productivity in explaining earnings disparities between immigrants and natives using population-wide matched employer-employee data from Sweden. We find substantial earnings returns to working in firms with higher persistent productivity, with greater gains for immigrants from non-Western countries. Moreover, the pass-through of within-firm productivity variation to earnings is stronger for immigrants in low-productive, immigrant-dense firms. But immigrant workers are underrepresented in high-productive firms and less likely to move up the productivity distribution. Thus, sorting into less productive firms decreases earnings in poor-performing immigrant groups that would gain the most from working in high-productive firms.

Keywords: Firm productivity; Immigrant-native earnings gaps; Wage inequality (search for similar items in EconPapers)
JEL-codes: J15 J31 J62 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2021-12-08
New Economics Papers: this item is included in nep-bec, nep-eff, nep-eur, nep-lab and nep-ure
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Firm productivity and immigrant-native earnings disparity (2021)
Working Paper: Firm Productivity and Immigrant-Native Earnings Disparity (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:ifauwp:2021_018

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