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

Elke Jahn and Boris Hirsch

Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century from Verein für Socialpolitik / German Economic Association

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 immigrants supply labour less elastically to firms than natives. Under monopsonistic wage setting the estimated elasticity differential predicts a 4.6 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 discriminating against immigrants is profitable rather than costly.

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 (13) Track citations by RSS feed

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https://www.econstor.eu/bitstream/10419/65417/1/VfS_2012_pid_129.pdf (application/pdf)

Related works:
Working Paper: Is There Monopsonistic Discrimination against Immigrants? First Evidence from Linked Employer-Employee Data (2012) Downloads
Working Paper: Is there monopsonistic discrimination against immigrants? First evidence from linked employer-employee data (2012) Downloads
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