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Immigrants at New Destinations: How They Fare and Why

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  • Carneiro, Anabela

    (University of Porto)

  • Fortuna, Natércia

    (University of Porto)

  • Varejão, José

    (University of Porto)

Abstract

Using matched employer-employee data, we identify the determinants of immigrants’ earnings in the Portuguese labor market. Results previously reported for countries with a long tradition of hosting migrants are also valid in a new destination country. Two-thirds of the gap is attributable to match-specific and employer characteristics. Occupational downgrading and segregation into low-wage workplaces are two major causes behind the wage gap.

Suggested Citation

  • Carneiro, Anabela & Fortuna, Natércia & Varejão, José, 2010. "Immigrants at New Destinations: How They Fare and Why," IZA Discussion Papers 4892, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4892
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    Cited by:

    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. Valentine Fays & Benoît Mahy & François Rycx & Mélanie Volral, 2021. "Wage discrimination based on the country of birth: do tenure and product market competition matter?," Applied Economics, Taylor & Francis Journals, vol. 53(13), pages 1551-1571, March.
    3. Arellano-Bover, Jaime & San, Shmuel, 2023. "The Role of Firms and Job Mobility in the Assimilation of Immigrants: Former Soviet Union Jews in Israel 1990–2019," IZA Discussion Papers 16389, Institute of Labor Economics (IZA).
    4. Cláudia Duarte & Sónia Cabral, 2013. "Mind the gap! The relative wages of immigrants in the Portuguese labour market," Working Papers w201305, Banco de Portugal, Economics and Research Department.
    5. Lehrer, Steven & Lepage, Louis-Pierre & Sousa Pereira, Nuno, 2024. "Breaking Barriers: The Impact of Employer Exposure to Immigrants," Working Paper Series 2/2024, Stockholm University, Swedish Institute for Social Research.
    6. Cláudia Duarte & Sónia Cabral, 2012. "The wage gap of immigrants in the Portuguese labour market," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    7. Tijan L. Bah, 2018. "Occupation-skill mismatch and selection of immigrants: Evidence from the Portuguese labor market," NOVAFRICA Working Paper Series wp1804, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    8. Martins, Pedro S. & Piracha, Matloob & Varejão, José, 2018. "Do immigrants displace native workers? Evidence from matched panel data," Economic Modelling, Elsevier, vol. 72(C), pages 216-222.
    9. repec:ptu:bdpart:a201217 is not listed on IDEAS
    10. Heather Dickey & Stephen Drinkwater & Sergei Shubin, 2018. "Labour market and social integration of Eastern European migrants in Scotland and Portugal," Environment and Planning A, , vol. 50(6), pages 1250-1268, September.
    11. Nuno Ornelas Martins & Américo Mendes, 2012. "Social Exclusion of Immigrants from a Capability Perspective: The Case of Portugal," Chapters, in: Roberta Capello & Tomaz Ponce Dentinho (ed.), Globalization Trends and Regional Development, chapter 10, Edward Elgar Publishing.
    12. Armando J. Garcia Pires, 2015. "Brain Drain And Brain Waste," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(1), pages 1-34, March.
    13. Michael Coon & Miao Chi, 2019. "Visa Wait Times and Future Earnings: Evidence from the National Survey of College Graduates," Journal of Economics, Race, and Policy, Springer, vol. 2(1), pages 43-61, June.
    14. Roberta Capello & Tomaz Ponce Dentinho (ed.), 2012. "Globalization Trends and Regional Development," Books, Edward Elgar Publishing, number 14815.

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    More about this item

    Keywords

    matched employer-employee data; workplace concentration of immigrants; immigrants' earnings;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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