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Discrimination in the Swiss Labour Market: an Empirical Analysis

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  • Golder, Stefan M.
  • Straubhaar, Thomas

Abstract

Recent studies have shown that there are significant earnings differentials between immigrants and natives in Switzerland. The goal of this paper is to determine whether these differences can be attributed to diverging socio-economic endowments or to discrimination. We use the well-known econometric technique, developed by Oaxaca (1973) and Blinder (1973), to determine the extent of discrimination. As data on earnings are available only for employed, we adopt a two-stage Heckman procedure to correct for sample selection-bias. Our analysis is based on data from the 1995 wave of the Swiss Labour Force Survey (SLFS). The earnings difference decomposition between natives and immigrants reveals that the discrimination effect plays a more important role in the explanation of the earnings differentials than the endowment effect.

Suggested Citation

  • Golder, Stefan M. & Straubhaar, Thomas, 1999. "Discrimination in the Swiss Labour Market: an Empirical Analysis," CEPR Discussion Papers 2100, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:2100
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    References listed on IDEAS

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    Cited by:

    1. Pierre Kohler, 2012. "The Effect of Host Society Culture on Migrant Wage Discrimination: Approaching the Roestigraben," IHEID Working Papers 08-2012, Economics Section, The Graduate Institute of International Studies.
    2. Pierre Kohler, 2012. "The Effect of Host Society Culture on Migrant Wage Discrimination: Approaching the Roestigraben," IHEID Working Papers 08-2012, Economics Section, The Graduate Institute of International Studies.
    3. Anaïd Lindemann & Jörg Stolz, 2018. "The Muslim Employment Gap, Human Capital, and Ethno-Religious Penalties: Evidence from Switzerland," Social Inclusion, Cogitatio Press, vol. 6(2), pages 151-161.
    4. Kohler, Pierre, 2012. "Three essays on the economic and cultural integration of migrants in Switzerland: putting into perspective the influence of economic discrimination and of host society culture," MPRA Paper 38129, University Library of Munich, Germany.

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    More about this item

    Keywords

    Discrimination; immigrant workers; International Migration; Wage Differentials;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • 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

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