Institutional Diversity and the Immigrant Wage Gap? A comparison between the German and British experience with statutory minimum wages

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Abstrakt

A comprehensive literature documents a nativity wage gap in Europe and in the ‘settler societies’. However, the size of this gap varies widely across countries even after controlling for education and other observed characteristics (Kesler 2010; Reitz 1998; Adsera and Chiswick 2007; Algan et al. 2010; Antecol et al. 2003). In some countries, wage inequalities between immigrants and natives are considerable, while in others they are small or even non-existent. The question is what drives these disparities in the wage gap between different countries? From studies on the gender wage gap, we know that the size of the pay gap between men and women depends on the existence and level of a statutory minimum wage (Blau and Kahn 2003). As immigrants constitute another vulnerable group over-represented in low-paid jobs, they are also likely to benefit more from minimum wage legislation. This paper applies the insights from gender studies to the nativity wage gap exploiting the introduction of minimum wages in Germany and the UK as a natural experiment. In greater detail, we apply a Difference-In-Difference research design on the UK Quarterly Labour Force Survey and the German Socio-Economic Panel.
OriginalsprogEngelsk
TidsskriftNordic Journal of Migration Research
ISSN1799-649X
StatusUnder udarbejdelse - 2020

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