Immigrant wage differentials, ethnicity and occupational segregation

Abstract

We investigate occupational attainment as well as estimating earnings differentials for non-white migrants and non-white natives, including occupational effects. We control for the occupational selection of immigrants and compare across native and immigrant groups. Relative to white natives, we find no evidence of an ethnic pay disadvantage for white and South Asian professional workers. Although occupational segregation and other human capital and socio-economic factors provide a partial explanation for the raw earnings differential, evidence of ethnic-based disadvantage in most occupations persists. © 2008 Royal Statistical Society.