cover image: Discussion Paper Series - CDP 37/21 /21 - Firm productivity and immigrant-native earnings disparity

20.500.12592/j1pnnk

Discussion Paper Series - CDP 37/21 /21 - Firm productivity and immigrant-native earnings disparity

21 Dec 2021

The differential returns are most marked in the lower half of the productivity distribution, where the immigrant share of the workforce is higher. [...] 19When separately re-computing the ranking of firms in 1998-2009 and 2010-2017 for the firms oper- ating in both periods, the correlation of the two rankings is of 0.70 and the share of firms moving up or down by at least 10 percentiles is about 0.25. [...] The presence of “Rest of the World” migrants increased over time in all deciles, but much more in the lower part of the productivity distribution. [...] The fact that the differential returns are greater in the lower part of the productivity distribution is in line with the across-firm estimates suggesting that immigrants have the most to gain from not working in firms with very low productivity. [...] The second component (pay-setting) shows how differences in the coefficients across the productivity distribution (relative to working in the first decile of firm productivity), affects the premium gap.34 Table 4 shows the decomposition results for the overall group of natives and immi- 34It is well-known that what is here labeled the pay-setting component is in general dependent on the choice of.

Authors

Rebecca Souster

Pages
37
Published in
United Kingdom

Tables

All