IZA Journal of Migration
Volume 5, Issue 1, 2016

Wage discrimination against immigrants: measurement with firm-level productivity data (Article) (Open Access)

Kampelmann S. , Rycx F.*
  • a Université Libre de Bruxelles, SBS-EM (CEB and DULBEA), CP114/02, Avenue F.D. Roosevelt 50, Brussels, B-1050, Belgium
  • b Université Libre de Bruxelles, SBS-EM (CEB and DULBEA), CP114/02, Avenue F.D. Roosevelt 50, Brussels, B-1050, Belgium, Université Catholique de Louvain (IRES), Louvain-la-Neuve, Belgium, IZA, Bonn, Germany

Abstract

This paper is one of the first to use employer-employee data on wages and labor productivity to measure discrimination against immigrants. We build on an identification strategy proposed by Bartolucci (Ind Labor Relat Rev 67(4):1166–1202, 2014) and address firm fixed effects and endogeneity issues through a diff GMM-IV estimator. Our models also test for gender-based discrimination. Empirical results for Belgium suggest significant wage discrimination against women and (to a lesser extent) against immigrants. We find no evidence for double discrimination against female immigrants. Institutional factors such as firm-level collective bargaining and smaller firm sizes are found to attenuate wage discrimination against foreigners, but not against women. JEL Classification: J15, J16, J24, J31, J7 © 2016, Kampelmann and Rycx.

Author Keywords

Wages Workers’ origin Productivity Linked employer-employee panel data Gender discrimination

Index Keywords

[No Keywords available]
Link
https://www.scopus.com/inward/record.uri?eid=2-s2.0-84983443079&doi=10.1186%2fs40176-016-0063-1&partnerID=40&md5=662bce55497b8869e36c2cb660998f0a
DOI: 10.1186/s40176-016-0063-1
ISSN: 21939039
Original Language: English