Immigrant–native pay gap driven by lack of access to high-paying jobs

Are Skeie Hermansen (), Andrew Penner, Marta Elvira, Olivier Godechot, Martin Hällsten, Lasse Folke Henriksen, Feng Hou, Zoltán Lippényi, Trond Petersen, Malte Reichelt, Halil Ibrahim Sabanci, Mirna Safi (), Donald Tomaskovic-Devey and Erik Vickstrom
Additional contact information
Are Skeie Hermansen: UiO - University of Oslo
Andrew Penner: UC - University of California
Marta Elvira: IESE Business School - IESE Business School
Martin Hällsten: Stockholm University
Lasse Folke Henriksen: CBS - Copenhagen Business School [Copenhagen]
Zoltán Lippényi: University of Groningen [Groningen]
Trond Petersen: UC Berkeley - University of California [Berkeley] - UC - University of California
Malte Reichelt: FAU - Friedrich-Alexander Universität Erlangen-Nürnberg = University of Erlangen-Nuremberg
Halil Ibrahim Sabanci: Frankfurt School of Finance and Management
Mirna Safi: CRIS - Centre de recherche sur les inégalités sociales (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique
Donald Tomaskovic-Devey: UMass Amherst - University of Massachusetts [Amherst] - UMASS - University of Massachusetts System

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Abstract: Immigrants to high-income countries often face considerable and persisting labor market difficulties upon arrival, yet their native-born children often experience economic progress. Little is known about the degree to which immigrant–native earnings differences reflect unequal pay when doing the same work for the same employer versus differential sorting into lower-paid jobs and broader labor market segregation. Using linked employer–employee data from nine European and North American countries, we document that sorting of immigrant-background workers into lower-paying jobs on average accounts for about four-fifths of immigrant–native earnings differences. However, within-job pay inequality remains consequential in several countries. These findings highlight the centrality of policies aimed at reducing between-job immigrant–native segregation, but also the relevance of policies ensuring equal pay for equal work.

Date: 2023-12-02
Note: View the original document on HAL open archive server: https://hal.science/hal-04319351v1
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Related works:
Journal Article: Immigrant–native pay gap driven by lack of access to high-paying jobs (2025)
Working Paper: Immigrant-native pay gap driven by lack of access to high-paying jobs (2025)
Working Paper: Immigrant-native pay gap driven by lack of access to high-paying jobs (2025)
Working Paper: Immigrant–native pay gap driven by lack of access to high-paying jobs (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-04319351

DOI: 10.31235/osf.io/2p4vw

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