"Studies analyzing linked employer-employee data show that sorting of workers into firms of different wage levels explains a large share of overall inequality. However, the effects of immigrant sorting have not been studied comprehensively. We analyze how sorting of immigrant (and descendant) workers into different labor market positions across occupations, firms, and jobs shapes native-immigrant wage gaps and how the dynamics are different across immigrant generations and origin countries. Analyzing Norwegian registry data from 2015 to 2018, we find considerable sorting effects on the native-immigrant wage gaps for both generations. A considerable share of native-immigrant wage gaps can be attributable to the sorting of immigrant workers into lower paying occupations, establishments, and jobs than comparable natives, net of human capital and individual attributes. The sorting patterns are strikingly similar across generation, suggesting persistent employer discrimination against native born children of immigrants."

Support: Digital