Is there monopsonistic discrimination against immigrants? First evidence from linked employer-employee data

Hirsch B, Jahn E (2012)

Publication Type: Other publication type

Publication year: 2012

Edited Volumes: Discussion Paper

Journal Issue: 79

URI: http://www.arbeitsmarkt.wiso.uni-erlangen.de/pdf/diskussionspapiere/dp79.pdf

Abstract

This paper investigates immigrants’ and natives’ labour supply to the firm within a semi-structural approach based on a dynamic monopsony framework. Applying duration models to a large administrative employer–employee data set for Germany, we find that once accounting for unobserved worker heterogeneity immi-grants supply labour less elastically to firms than natives. Under monopsonistic wage setting the estimated elasticity differential predicts a 4.7 log points wage penalty for immigrants thereby accounting for almost the entire unexplained native–immigrant wage differential of 2.9–5.9 log points. Our results imply that employers profit from discriminating against immigrants.

Authors with CRIS profile

Boris Hirsch Lehrstuhl für Volkswirtschaftslehre, insbesondere Arbeitsmarkt- und Regionalpolitik Elke Jahn Fachbereich Wirtschaftswissenschaften

How to cite

APA:

Hirsch, B., & Jahn, E. (2012). Is there monopsonistic discrimination against immigrants? First evidence from linked employer-employee data.

MLA:

Hirsch, Boris, and Elke Jahn. Is there monopsonistic discrimination against immigrants? First evidence from linked employer-employee data. 2012.

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