Are immigrants so stuck to the floor that the ceiling is irrelevant?
Hunt, Priscillia (2008) Are immigrants so stuck to the floor that the ceiling is irrelevant? Working Paper. Coventry: University of Warwick, Department of Economics. (Warwick economic research papers).
WRAP_hunt_twerp_838.pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
In this paper, the immigrant-native wage differential is explained through quantile regression estimations. Using repeated cross-sections of the British Labour Force Survey from 1993-2005, we analyse the returns to covariates across the conditional earnings distribution. We estimate a pooled model with an immigrant dummy and separate models for immigrants and natives of the UK. Our results show that the positive wage gap in favour of immigrants is attributed to those at higher quantiles. Returns to education and experience vary wider for natives than for immigrants. We decompose the wage gap in the Blinder-Oaxaca framework and apply quantile regression techniques to see if immigrants simply have more viable labour market characteristics than natives or if there is a preference for immigrant workers (reverse discrimination). Our findings suggest immigrants should actually be earning more and there is sufficient evidence of discrimination. This finding is, however, not symmetric across the conditional wage distribution and immigrants atthe bottom face more discrimination than those at the top.
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||H Social Sciences > HC Economic History and Conditions|
|Divisions:||Faculty of Social Sciences > Economics|
|Library of Congress Subject Headings (LCSH):||Immigrants -- Economic conditions, Wage differentials, Regression analysis|
|Series Name:||Warwick economic research papers|
|Publisher:||University of Warwick, Department of Economics|
|Place of Publication:||Coventry|
|Number of Pages:||37|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Open Access|
|Funder:||Fifth Framework Programme (European Commission) (FP5)|
|References:||Albrecht, James, Anders Björklund, and Susan Vroman (2003). "Is There a Glass Ceiling In Sweden?" Journal of Labor Economics, 21, pp. 145-77. Bauder, Harald (2006). "Origin, employment status and attitudes towards work: Immigrants in Vancouver, Canada", Work Employment Society, 20, pp. 709-29. Blaise, Melly (2005). "Decomposition of di¤erences in distribution using quantile regression," Labour Economics, 12(4), pp. 577-590. Blinder, Alan (1973). �Wage Discrimination: Reduced Form and Structural Estimates�, The Journal of Human Resources, 7(4), pp. 436-55. Borjas, George (1987). "Self-Selection and the Earnings of Immigrants," American Economic Review, 77(4), pp. 531-53. Burnham, Kenneth P. and David R. Anderson (2004). "Multimodel Inference: Understanding AIC and BIC in Model Selection", Sociological Methods & Research, 33(2), pp. 261-304. Butcher, Kristin F. and John DiNardo. "The Immigrant And Native-Born Wage Distributions: Evidence From United States Censuses," International Labor Relations Review, 56, pp. 97-121. Chiswick, Barry (1978). "The E¤ect of Americanization on the Earnings of Foreign-born Men", Journal of Political Economy, 86(5), pp. 897-921. Chiswick, Barry (1980). "The Earnings of White and Coloured Male Immigrants in Britain," Economica, 47(185), pp. 81-87. Chiswick, Barry and M.E Hurst (1999). "The employment, unemployment and unemployment compensation bene�ts of immigrants", Research in Employment Policy, Vol. 2. Chiswick, Barry, Anh Le, and Paul Miller (2006). "How Immigrants Fare Across the Earnings Distribution: International Analyses", Institute for the Study of Labor, IZA Discussion Paper No. 2405. Clark, Ken and Joanne Lindley (2006). "Immigrant Labour Market Assimilation and Arrival Effects: Evidence from the UK Labour Force Survey," IZA Discussion Papers 2228, Institute for the Study of Labor (IZA). Cotton, C. (1988). "On the Decomposition of Wage Differentials", Review of Economics and Statistics, 70, pp 236-43. Denny, K., Harmon, C., Roche, M. (1997). "The Distribution of Discrimination in Immigrant Earnings: Evidence from Britain 1974-93", IFS Working Paper no. W98/3. Dustmann, Christian, Francesca Fabbri, Ian Preston, and Jonathan Wadsworth (2003). "Labour market performance of immigrants in the UK labour market", Home Office Online Report 05/03. Glover, Stephen, Ceri Gott , Anaïs Loizillon, Jonathan Portes, Richard Price, Sarah Spencer, Vasanthi Srinivasan and Carole Willis (2001). "Migration: an economic and social analysis", Home Office, RDS Occasional Paper No. 67. Green, Francis, Stephen Machin, and David Wilkinson (1998). �The Meaning and Determinants of Skill Shortages", Oxford Bulletin of Economics and Statistics, 60(2), pp. 165�88. Harmon, C. and Ian Walker (1995). "Estimates of the economic return to schooling for the United Kingdom", American Economic Review, 85, pp.1278-86. Koenker, Roger (2005). Quantile Regression, Cambridge University Press. Lee, Sokbae (2007). "Endogeneity in quantile regression models: A control function approach", Journal of Econometrics, 141, pp. 1131-58. Machado, José A. F. and José Mata (2000). "Counterfactual decomposition of changes in wage distributions using quantile regression", Journal of Applied Econometrics 20(4), pp. 445-65. Machado, José A. F. and José Mata (2001). "Earning functions in Portugal: evidence from quantile regressions", Empirical Economics, 26(1), pp. 115�134. Oaxaca, Ronald (1973). �Male-Female Wage Di¤erentials in Urban Labor Market", International Economic Review,14(3), pp. 693-709. Oaxaca, Ronald and Michael Ransom (1999). "Identi�cation in Detailed Wage Decompositions", The Review of Economics and Statistics, 81(1), pp. 154-57. Ottaviano, G. and Peri, G. (2005). �Rethinking the Gains From Immigration: Theory and Evidence from The U.S.", NBER Working Paper No. 11672. Wooldridge, Jeffrey (2002). Econometric Analysis of Cross Section and Panel Data, MIT Press.|
Actions (login required)