Accounting for Firms in Ethnicity Wage Gaps Throughout the Earnings Distribution

Racism and Ethnic Inequality in a Time of Crisis

“…It seems to be the case that labour market discrimination, at least in the hiring and possibly at the promotion and pay stage, is one part of the story of differential labour market outcomes of ethnic minority people in the UK (Clark and Shankley, 2020;Manning and Rose, 2021). Other powerful factors are the imperfect transferability of foreign human capital in the form of qualification and work experience to the country of destination (Fortin et al, 2016;Zwysen and Demireva, 2018), family influence on child outcome (Heckman and Landersø, 2021), and the quality and associated pay scale of firms people work for (Phan et al, 2022).…”

Workplace Segregation and the Labour Market Performance of Immigrants

“…Focusing on the firm, rather than the neighourhood, is also motivated by the active literature on the role of firms for understanding earnings differences between immigrants and natives (Aydemir and Skuterud, 2008;Barth et al, 2012;Brinatti and Morales, 2021;Phan et al, 2022), to which I also contribute. Relative to these papers, which emphasise the role of sorting across high-or low-paying firms in determining immigrants' contemporaneous wages, I show how a specific, time-varying characteristic of firms, namely the conational share at the time of first employment, has persistent long-term effects on an immigrant's labour market outcomes and in particular employment.…”