Publication: Wage discrimination against immigrants: measurement with firm-level productivity data

In this study, Stephan Kampelmann and François Rycx provide an excellent overview of the different sources of discrimination. In one strict definition, discrimination is a different reward for equal productivity. With new estimation methods accounting for firm-level productivity, it is found that the migrant-native wage difference nearly vanishes, while the gender wage difference increases. In a final elaboration, the authors demonstrate that firm-level wage bargaining does reduce discrimination.

The article is published in the IZA Journal of Migration. An open access discussion paper can be downloaded here.