Qualifications, Discrimination, or Assimilation? An Extended Framework for Analysing Immigrant Wage Gaps

Helena Nielsen, Michael Rosholm, Nina Smith and Leif Husted ()
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Leif Husted: KORA - Danish Institute for Local and Regional Government Research
Authors registered in the RePEc Author Service: Leif Jensen

No 365, IZA Discussion Papers from IZA Network @ LISER

Abstract: In this paper, we analyze immigrant wage gaps and propose an extension of the traditional wage decomposition technique, which is a synthesis from two strains of literature on ethnic/immigrant wage differences, namely the ‘assimilation literature’ and the ‘discrimination literature’. We estimate separate wage equations for natives and a number of immigrant groups using panel data sample selection models. Based on the estimations, we find that the immigrant wage gap is caused by a lack of qualifications and incomplete assimilation, and that a large fraction of that gap would disappear if only immigrants could find employment and thus accumulate work experience.

Keywords: immigrants; Wage assimilation; panel data sample selection model; wage gap (search for similar items in EconPapers)
JEL-codes: J15 J16 J31 J71 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2001-09
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Published - published in: Empirical Economics, 2004, 29 (4), 855-885

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Journal Article: Qualifications, discrimination, or assimilation? An extended framework for analysing immigrant wage gaps (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp365

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