Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/58711 
Year of Publication: 
2011
Series/Report no.: 
IZA Discussion Papers No. 6227
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
Ethnic minorities have lower wages compared to the ethnic majority in most EU-countries. However, to what extent these wage gaps are the result of prejudice toward ethnic minority workers is virtually unknown. This study sets out to examine what role prejudice play in the creation of the ethnic wage gap in one of Europe's most egalitarian countries, Sweden. The analysis takes into account the important distinction between average employer attitudes and the attitude of the marginal employer. Our results confirm that the attitudes of the marginal employer - but not those of the average employer - are important for the ethnic wage gap. This relationship becomes even stronger when potential measurement error and other forms of endogeneity are accounted for by controlling for a rich set of variables and implementing instrumental variable techniques.
Subjects: 
attitudes
prejudice
marginal employer
ethnic wage gap
JEL: 
J64
J71
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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