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Understanding the native–immigrant wage gap using matched employer-employee data - Evidence from Germany

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Article

Bartolucci, Cristian

ILR Review

2014

67

4

Oct.

1166-1202

discrimination ; migrant worker ; racial discrimination ; statistics ; wage differential

Germany

Wages and wage payment systems

http://ilr.sagepub.com/content/67/4.toc

English

Bibliogr.

"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. "

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