Abstract.
In this paper, we analyze immigrant wage gaps and propose an extension of the traditional wage decomposition technique, which is a synthesis from two strains of literature on ethnic/immigrant wage differences, namely the ‘assimilation literature’ and the ‘discrimination literature’. We estimate separate wage equations for natives and a number of immigrant groups using panel data sample selection models. Based on the estimations, we find that the immigrant wage gap is caused by a lack of qualifications and incomplete assimilation, and that a large fraction of that gap would disappear if only immigrants could find employment and thus accumulate work experience.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Author information
Authors and Affiliations
Corresponding author
Additional information
First version received: June 2001 / Final version received: October 2003
The project has been supported financially by the Danish Research Agency (the FREJA grant) and TSER. Furthermore, the first author received support from the Danish Social Science Research Council (SSF) while this work was undertaken. We are grateful for comments from the editor of Empirical Economics, Bernd Fitzenberger, two anonymous referees, several seminar and conference participants, and for the research assistance done by Thomas H. Jensen.
Rights and permissions
About this article
Cite this article
Nielsen, H., Rosholm, M., Smith, N. et al. Qualifications, discrimination, or assimilation? An extended framework for analysing immigrant wage gaps. Empirical Economics 29, 855–883 (2004). https://doi.org/10.1007/s00181-004-0221-9
Issue Date:
DOI: https://doi.org/10.1007/s00181-004-0221-9