Foreign Workers and the Wage Distribution: What Does the Influence Function Reveal?
This paper draws upon influence function regression methods to determine where foreign workers stand in the distribution of private sector wages in Luxembourg, and assess whether and how much their wages contribute to wage inequality. This is quantified by measuring the effect that a marginal increa...
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| Format: | Article |
| Language: | English |
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MDPI AG
2018-09-01
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| Series: | Econometrics |
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| Online Access: | http://www.mdpi.com/2225-1146/6/3/41 |
| _version_ | 1817989147162312704 |
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| author | Chung Choe Philippe Van Kerm |
| author_facet | Chung Choe Philippe Van Kerm |
| author_sort | Chung Choe |
| collection | DOAJ |
| description | This paper draws upon influence function regression methods to determine where foreign workers stand in the distribution of private sector wages in Luxembourg, and assess whether and how much their wages contribute to wage inequality. This is quantified by measuring the effect that a marginal increase in the proportion of foreign workers—foreign residents or cross-border workers—would have on selected quantiles and measures of inequality. Analysis of the 2006 Structure of Earnings Survey reveals that foreign workers have generally lower wages than natives and therefore tend to haul the overall wage distribution downwards. Yet, their influence on wage inequality reveals small and negative. All impacts are further muted when accounting for human capital and, especially, job characteristics. Not observing any large positive inequality contribution on the Luxembourg labour market is a striking result given the sheer size of the foreign workforce and its polarization at both ends of the skill distribution. |
| first_indexed | 2024-04-14T00:42:26Z |
| format | Article |
| id | doaj.art-7d4b7e6a98564d2eab595195e8175712 |
| institution | Directory Open Access Journal |
| issn | 2225-1146 |
| language | English |
| last_indexed | 2024-04-14T00:42:26Z |
| publishDate | 2018-09-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Econometrics |
| spelling | doaj.art-7d4b7e6a98564d2eab595195e81757122022-12-22T02:22:08ZengMDPI AGEconometrics2225-11462018-09-01634110.3390/econometrics6030041econometrics6030041Foreign Workers and the Wage Distribution: What Does the Influence Function Reveal?Chung Choe0Philippe Van Kerm1Department of Economics, Hanyang University, 55 Hanyangdaehak-ro, Sangnok-gu, Ansan, Gyeonggi-do 426-791, KoreaLuxembourg Institute of Socio-Economic Research and University of Luxembourg, Maison des Sciences Humaines, 11 Porte des Sciences, L-4366 Esch/Alzette, LuxembourgThis paper draws upon influence function regression methods to determine where foreign workers stand in the distribution of private sector wages in Luxembourg, and assess whether and how much their wages contribute to wage inequality. This is quantified by measuring the effect that a marginal increase in the proportion of foreign workers—foreign residents or cross-border workers—would have on selected quantiles and measures of inequality. Analysis of the 2006 Structure of Earnings Survey reveals that foreign workers have generally lower wages than natives and therefore tend to haul the overall wage distribution downwards. Yet, their influence on wage inequality reveals small and negative. All impacts are further muted when accounting for human capital and, especially, job characteristics. Not observing any large positive inequality contribution on the Luxembourg labour market is a striking result given the sheer size of the foreign workforce and its polarization at both ends of the skill distribution.http://www.mdpi.com/2225-1146/6/3/41immigrant wageswage inequalitycross-border workersinfluence functionRIF regressionLuxembourg |
| spellingShingle | Chung Choe Philippe Van Kerm Foreign Workers and the Wage Distribution: What Does the Influence Function Reveal? Econometrics immigrant wages wage inequality cross-border workers influence function RIF regression Luxembourg |
| title | Foreign Workers and the Wage Distribution: What Does the Influence Function Reveal? |
| title_full | Foreign Workers and the Wage Distribution: What Does the Influence Function Reveal? |
| title_fullStr | Foreign Workers and the Wage Distribution: What Does the Influence Function Reveal? |
| title_full_unstemmed | Foreign Workers and the Wage Distribution: What Does the Influence Function Reveal? |
| title_short | Foreign Workers and the Wage Distribution: What Does the Influence Function Reveal? |
| title_sort | foreign workers and the wage distribution what does the influence function reveal |
| topic | immigrant wages wage inequality cross-border workers influence function RIF regression Luxembourg |
| url | http://www.mdpi.com/2225-1146/6/3/41 |
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