Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/250621 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14960
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We study the role of firm productivity in explaining earnings disparities between immigrants and natives using population-wide matched employer-employee data from Sweden. We find substantial earnings returns to working in firms with higher persistent productivity, with greater gains for immigrants from non-Western countries. Moreover, the pass-through of within-firm productivity variation to earnings is stronger for immigrants in low-productive, immigrant-dense firms. But immigrant workers are underrepresented in high-productive firms and less likely to move up the productivity distribution. Thus, sorting into less productive firms decreases earnings in poor-performing immigrant groups that would gain the most from working in high-productive firms.
Subjects: 
firm productivity
immigrant-native earnings gaps
wage inequality
JEL: 
J15
J31
J62
Document Type: 
Working Paper

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