Understanding the Native–Immigrant Wage Gap Using Matched Employer-Employee Data

2014/09/03 by Cristian Bartolucci · 1 voice · 1 citation
Social Sciences · Economics, Econometrics and Finance · #Migration and Labor Dynamics #Migration, Ethnicity, and Economy #Labor market dynamics and wage inequality

paper · doi:10.1177/0019793914546300

openalex publication_date 2014/09/03 · openalex created_date 2025/10/10 · openalex updated_date 2026/05/21

Abstract

In this article, the author proposes a new method for measuring wage discrimination that builds on the methodology first developed by Hellerstein and Neumark (1999). The author’s method has three main advantages: It is robust to labor market segregation, it does not impose linearity on the wage-setting equation, and it is not only a test for discrimination but also produces a measure of discrimination. Using matched employer-employee data from Germany, the author finds that immigrants are being discriminated against. They receive wages that are 13% lower than native workers in the same firm.

Citations

• Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations
• Another look at the instrumental variable estimation of error-components models

Cited by

• Immigrant–native pay gap driven by lack of access to high-paying jobs

Discussions

• How do #immigrants fare compared to native workers in the same workplace? Cristian Bartolucci #CollegioCA finds that immigrants receive wages that are 13% lower than native workers in the same firm. [bsky, 1 points, 0 comments]

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