Nanos, P. and Schluter, C. (2014) The composition of wage differentials between migrants and natives. European Economic Review, 65. pp. 23-44. ISSN 0014-2921
Abstract
We consider the role of unobservables, such as differences in search frictions, reservation wages, and productivities for the explanation of wage differentials between migrants and natives. We disentangle these by estimating an empirical general equilibrium search model with on-the-job search due to Bontemps et al. (1999) on segments of the labour market defined by occupation, age, and nationality using a large scale German administrative dataset.
The native-migrant wage differential is then decomposed into several parts, and we focus especially on the component that we label “migrant effect”, being the difference in wage offers between natives and migrants in the same occupation-age segment in firms of the same productivity. Counterfactual decompositions of wage differentials allow us to identify and quantify their drivers, thus explaining within a common framework what is often labelled the unexplained wage gap.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2014 Elsevier. This is an author produced version of a paper subsequently published in European Economic Review. Uploaded in accordance with the publisher's self-archiving policy. Article available under the terms of the CC-BY-NC-ND licence (https://creativecommons.org/licenses/by-nc-nd/4.0/) |
Keywords: | Immigrants; Decomposition of wage differentials; Job search; Turnover |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 29 Jan 2015 09:50 |
Last Modified: | 10 Mar 2016 10:33 |
Published Version: | http://dx.doi.org/10.1016/j.euroecorev.2013.10.003 |
Status: | Published |
Publisher: | Elsevier |
Refereed: | Yes |
Identification Number: | 10.1016/j.euroecorev.2013.10.003 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:82782 |