Immigrant–Native Wage Inequality across Occupational Sectors in Australia

Asad Islam and Jaai Parasnis

No 14-14, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: We investigate wage inequality by migrant status across white collar and blue collar occupations in Australia. We use the reweighting and recentered influence function regression methods proposed by Firpo, Fortin, and Lemieux (2009) to decompose wage differentials across its distribution. Migrants are observed to have a wage advantage, and this wage differential varies over the wage distribution as well as by occupation. Significant wage differentials are found above the median: positive for white collar workers and negative for blue collar workers. Overall, the wage advantage of migrants reflects their superior labour market characteristics, and in particular, their levels of education. A decomposition analysis indicates that migrants receive lower returns for their education. We explore the wage differences by country of origin and find that English language proficiency plays an important role.

Keywords: RIF regressions; wage inequality; occupations; immigration; decomposition; language (search for similar items in EconPapers)
JEL-codes: C21 D31 J15 J31 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2014-04
New Economics Papers: this item is included in nep-mig
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.buseco.monash.edu.au/eco/research/paper ... antislamparasnis.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mos:moswps:2014-14

Ordering information: This working paper can be ordered from
https://www.monash.e ... esearch/publications

Access Statistics for this paper

More papers in Monash Economics Working Papers from Monash University, Department of Economics Department of Economics, Monash University, Victoria 3800, Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Simon Angus ().