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Qualifications, Discrimination, or Assimilation? An Extended Framework for Analysing Immigrant Wage Gaps

Author

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  • Nielsen, Helena Skyt

    (Aarhus University)

  • Rosholm, Michael

    (Aarhus University)

  • Smith, Nina

    (Aarhus University)

  • Husted, Leif

    (KORA - Danish Institute for Local and Regional Government Research)

Abstract

In this paper, we analyze immigrant wage gaps and propose an extension of the traditional wage decomposition technique, which is a synthesis from two strains of literature on ethnic/immigrant wage differences, namely the ‘assimilation literature’ and the ‘discrimination literature’. We estimate separate wage equations for natives and a number of immigrant groups using panel data sample selection models. Based on the estimations, we find that the immigrant wage gap is caused by a lack of qualifications and incomplete assimilation, and that a large fraction of that gap would disappear if only immigrants could find employment and thus accumulate work experience.

Suggested Citation

  • Nielsen, Helena Skyt & Rosholm, Michael & Smith, Nina & Husted, Leif, 2001. "Qualifications, Discrimination, or Assimilation? An Extended Framework for Analysing Immigrant Wage Gaps," IZA Discussion Papers 365, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp365
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    References listed on IDEAS

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    More about this item

    Keywords

    immigrants; Wage assimilation; panel data sample selection model; wage gap;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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