Hofer, Helmut Titelbach, Gerlinde Winter-Ebmer, Rudolf
Year of Publication:
NRN Working Paper, NRN: The Austrian Center for Labor Economics and the Analysis of the Welfare State No. 1407
This paper analyses wage discrimination against immigrants in Austria using combined information from the labor force surveys and administrative social security data. We find that immigrants experience a wage disadvantage of 15 percentage points compared to natives. However, a substantial part of the wage gap can be explained by differences in human capital endowment and job position. Decomposition methods using quantile regressions show larger discrimination in the upper part of the wage distribution. Moreover, we do not find any evidence for wage assimilation of immigrants in Austria.