Understanding the Native–Immigrant Wage Gap Using Matched Employer-Employee Data

Cristian Bartolucci

ILR Review, 2014, vol. 67, issue 4, 1166-1202

Abstract: In this article, the author proposes a new method for measuring wage discrimination that builds on the methodology first developed by Hellerstein and Neumark (1999). The author’s method has three main advantages: It is robust to labor market segregation, it does not impose linearity on the wage-setting equation, and it is not only a test for discrimination but also produces a measure of discrimination. Using matched employer-employee data from Germany, the author finds that immigrants are being discriminated against. They receive wages that are 13% lower than native workers in the same firm.

Keywords: labor market discrimination; immigration; matched employer-employee data (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ilrrev:v:67:y:2014:i:4:p:1166-1202

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