IDEAS home Printed from https://ideas.repec.org/p/sgh/kaewps/2018041.html
   My bibliography  Save this paper

Unexplained native-immigrant wage gap in Poland in 2015-2016. Insights from the surveys in Warsaw and in Lublin

Author

Listed:
  • Pawel Strzelecki

Abstract

In the modern history, Poland has never experienced large wave of labour immigration comparable to observed since 2014. Massive immigration provoked a public discussion about the consequences of immigration for the Polish labour market. In this paper we shed some light on that problem by analysing the level of the native-immigrant wage gap in two cities in Poland using two popular methods of filtering off the impact of differences between immigrant and native workers in composition of their individual characteristics and their workplaces. These methods are: Blinder-Oaxaca decomposition and non-parametric decomposition proposed by Nopo (2008). In order to compare native and immigrant workers we use the Polish Labour Force Survey (PLFS) data and the special survey of immigrants ordered by National Bank of Poland and conducted using respondent driven sampling (RDS) method. The results of the decompositions show that the difference in average wages of immigrant and native workers until 2016 is explained mostly by the differences in the composition of features of persons and workplaces. Unexplained wage gap concerned only hourly wages in Warsaw (and amounted to between 4-15% depending on method of decomposition and weighting of the results) but was not significant in Lublin. However unexplained wage gap was significant for occupations with higher wages in both cities. In some cases migrants achieved on average higher wages than native workers. Most immigrants lived in Poland for relatively short period of time and in this early stage of immigration process there were also no signs of narrowing the unexplained wage gap for immigrants who stayed longer than others.

Suggested Citation

  • Pawel Strzelecki, 2018. "Unexplained native-immigrant wage gap in Poland in 2015-2016. Insights from the surveys in Warsaw and in Lublin," KAE Working Papers 2018-041, Warsaw School of Economics, Collegium of Economic Analysis.
    • Handle: RePEc:sgh:kaewps:2018041
    as

    Download full text from publisher

    File URL: http://kolegia.sgh.waw.pl/pl/KAE/Documents/WorkingPapersKAE/WPKAE_2018_041.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kamil DYBCZAK & Kamil GALUSCAK, 2013. "Changes in the Czech Wage Structure: Does Immigration Matter?," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 63(2), pages 108-128, May.
    2. Manacorda, Marco & Manning, Alan & Wadsworth, Jonathan, 2006. "The impact of immigration on the structure of male wages: theory and evidence from Britain," LSE Research Online Documents on Economics 19797, London School of Economics and Political Science, LSE Library.
    3. Miranda, Alfonso & Zhu, Yu, 2013. "English deficiency and the native–immigrant wage gap," Economics Letters, Elsevier, vol. 118(1), pages 38-41.
    4. Long, James E, 1980. "The Effect of Americanization on Earnings: Some Evidence for Women," Journal of Political Economy, University of Chicago Press, vol. 88(3), pages 620-629, June.
    5. Ben Jann, 2008. "A Stata implementation of the Blinder-Oaxaca decomposition," ETH Zurich Sociology Working Papers 5, ETH Zurich, Chair of Sociology, revised 14 May 2008.
    6. Thomas Y. Mathä & Alessandro Porpiglia & Eva Sierminska, 2011. "The Immigrant/Native Wealth Gap in Germany, Italy and Luxembourg," BCL working papers 57, Central Bank of Luxembourg.
    7. Chiswick, Barry R. & Miller, Paul W., 2009. "The international transferability of immigrants' human capital," Economics of Education Review, Elsevier, vol. 28(2), pages 162-169, April.
    8. Alicia Adsera & Barry Chiswick, 2007. "Are there gender and country of origin differences in immigrant labor market outcomes across European destinations?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(3), pages 495-526, July.
    9. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    10. Florian Lehmer & Johannes Ludsteck, 2011. "The Immigrant Wage Gap in Germany: Are East Europeans Worse Off?," ERSA conference papers ersa10p769, European Regional Science Association.
    11. Karolina Goraus & Joanna Tyrowicz & Lucas Velde, 2017. "Which Gender Wage Gap Estimates to Trust? A Comparative Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(1), pages 118-146, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paweł Strzelecki & Jakub Growiec & Robert Wyszyński, 2022. "The contribution of immigration from Ukraine to economic growth in Poland," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(2), pages 365-399, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zorlu, Aslan, 2011. "Ethnic Disparities in the Graduate Labour Market," IZA Discussion Papers 6159, Institute of Labor Economics (IZA).
    2. Kai Ingwersen & Stephan L. Thomsen, 2021. "The immigrant-native wage gap in Germany revisited," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(4), pages 825-854, December.
    3. José-Ignacio Antón & Rafael Muñoz de Bustillo & Miguel Carrera, 2012. "Raining stones? Female immigrants in the Spanish labour market," Estudios de Economia, University of Chile, Department of Economics, vol. 39(1 Year 20), pages 53-86, June.
    4. Beyer, Robert, 2016. "The Labor Market Performance of Immigrants in Germany," VfS Annual Conference 2016 (Augsburg): Demographic Change 145799, Verein für Socialpolitik / German Economic Association.
    5. Robert C. M. Beyer, 2017. "The Performance of Immigrants in the German Labor Market," SOEPpapers on Multidisciplinary Panel Data Research 892, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Jakub Picka, 2014. "Problém "public-private pay gap" v České republice [The Public-Private Pay Gap in the Czech Republic]," Politická ekonomie, Prague University of Economics and Business, vol. 2014(5), pages 662-682.
    7. Liliane Bonnal & Rachid Boumahdi & Pascal Favard, 2013. "The easiest way to estimate the Oaxaca-Blinder decomposition," Applied Economics Letters, Taylor & Francis Journals, vol. 20(1), pages 96-101, January.
    8. Foster, E. Michael & Hillemeier, Marianne M. & Bai, Yu, 2011. "Explaining the disparity in placement instability among African-American and white children in child welfare: A Blinder-Oaxaca decomposition," Children and Youth Services Review, Elsevier, vol. 33(1), pages 118-125, January.
    9. Brenzel, Hanna & Reichelt, Malte, 2015. "Job mobility as a new explanation for the immigrant-native wage gap : a longitudinal analysis for the German labor market," IAB-Discussion Paper 201512, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    10. Ilke Onur & Malathi Velamuri, 2016. "A Life Course Perspective on Gender Differences in Cognitive Functioning in India," Journal of Human Capital, University of Chicago Press, vol. 10(4), pages 520-563.
    11. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    12. Emmanuel Skoufias & Gladys Lopez-Acevedo, 2009. "Latin America - Determinants of Regional Welfare Disparities within Latin American Countries : Synthesis," World Bank Publications - Reports 3048, The World Bank Group.
    13. Karolina Goraus & Joanna Tyrowicz, 2014. "Gender Wage Gap in Poland – Can It Be Explained by Differences in Observable Characteristics?," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 36.
    14. Emmanuel Skoufias & Gladys Lopez-Acevedo, 2009. "Latin America - Determinants of Regional Welfare Disparities within Latin American Countries : Country Case Studies," World Bank Publications - Reports 3051, The World Bank Group.
    15. Shi, Xiaojun & Yan, Zhu, 2018. "Urbanization and risk preference in China: A decomposition of self-selection and assimilation effects," China Economic Review, Elsevier, vol. 49(C), pages 210-228.
    16. Daniel Rauhut & Birgit Aigner-Walder & Rahel M. Schomaker, 2023. "Economic Theory and Migration," Springer Books, in: The Economics of Immigration Beyond the Cities, chapter 0, pages 21-50, Springer.
    17. Li, Yunsen & Yang, Haoran & Luo, Liang, 2021. "Poverty exposure and cognitive abilities of children in rural China: Causation and the roles of family investments," Children and Youth Services Review, Elsevier, vol. 121(C).
    18. Keumseok Koh & Michelle L. Kaiser & Glennon Sweeney & Karima Samadi & Ayaz Hyder, 2020. "Explaining Racial Inequality in Food Security in Columbus, Ohio: A Blinder–Oaxaca Decomposition Analysis," IJERPH, MDPI, vol. 17(15), pages 1-15, July.
    19. Lee, Taehoon & Peri, Giovanni & Viarengo, Martina, 2022. "The gender aspect of migrants’ assimilation in Europe," Labour Economics, Elsevier, vol. 78(C).
    20. Mustafizur Rahman & Debapriya Bhattacharya & Md Al-Hasan, 2019. "Dimensions of Informality in Bangladesh Labour Market and the Consequent Wage Penalty," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 20(2), pages 224-247, September.

    More about this item

    Keywords

    wage distribution; wage differentials; immigrants; native workers; wage gap;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sgh:kaewps:2018041. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dariusz Nojszewski (email available below). General contact details of provider: https://edirc.repec.org/data/kawawpl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.