Is there monopsonistic discrimination against immigrants? First evidence from linked employer-employee data

Boris Hirsch and Elke Jahn

No 79, Discussion Papers from Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics

Abstract: This paper investigates immigrants' and natives' labour supply to the firm within a semi-structural approach based on a dynamic monopsony framework. Applying duration models to a large administrative employer-employee data set for Germany, we find that once accounting for unobserved worker heterogeneity immi-grants supply labour less elastically to firms than natives. Under monopsonistic wage setting the estimated elasticity differential predicts a 4.7 log points wage penalty for immigrants thereby accounting for almost the entire unexplained native-immigrant wage differential of 2.9-5.9 log points. Our results imply that employers profit from discriminating against immigrants.

Keywords: monopsony; native-immigrant wage differential; discrimination; Germany (search for similar items in EconPapers)
JEL-codes: J42 J61 J71 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-lab, nep-lma and nep-mig
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Citations: View citations in EconPapers (17)

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https://www.econstor.eu/bitstream/10419/66787/1/730109895.pdf (application/pdf)

Related works:
Working Paper: Is There Monopsonistic Discrimination against Immigrants? First Evidence from Linked Employer-Employee Data (2012)
Working Paper: Is there monopsonistic discrimination against immigrants? First evidence from linked employer employee data (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:faulre:79

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