Firm productivity and immigrant-native earnings disparity

Olof Ã…slund (), Cristina Bratu, Stefano Lombardi and Anna Thoresson ()
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Olof Ã…slund: Olof Ã…slund
Anna Thoresson: Anna Thoresson
Authors registered in the RePEc Author Service: Olof Åslund

No 2137, CReAM Discussion Paper Series from Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London

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 immi grant 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)
Date: 2021-12
New Economics Papers: this item is included in nep-bec, nep-eff, nep-eur, nep-lab, nep-mig and nep-ure
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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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