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The Earnings and Employment Gap between Natives and Immigrants in the UK between 1981 and 2006

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journal contribution
posted on 2018-02-08, 11:47 authored by Sara Lemos
We exploit the sizeable and long Lifetime Labour Market Database (LLMDB) to estimate the immigrant-native employment gap across gender, across continents of nationality and across lengths of stay in the UK between 1981 and 2006. These estimates are a novel contribution, as estimates for men and women are scarce in the literature and estimates across immigrants' origin and length of stay are as yet unavailable. Furthermore, we estimate the employment gap as the differential in the number of employed weeks in the year between immigrants and natives, which has not been done before – this contrasts with the employment probability gap differential usually estimated in the literature. We also estimate the immigrant-native earnings gap across gender, across the entire earnings distribution, across continents of nationality and across lengths of stay. Estimates across the earnings distribution are also a novel contribution, as these are also as yet unavailable in the literature. Our main conclusion is that both the immigrant-native employment and earnings gap vary across gender, continents of nationality and lengths of stay. Immigrant women earn more than native women throughout the distribution. The earnings gap is positive throughout for females, smaller at the bottom, larger at the top and relatively constant in the middle of the distribution. In contrast, it increases monotonically across the distribution for males: it is negative at the bottom and positive at the top. Immigrants from Africa, Asia and the Middle East, Central and South America and Eastern Europe, in the main, suffer a larger employment and earnings penalty, which is reduced as their length of stay increases. In contrast, immigrants from North America have a more favourable labour market experience.

History

Citation

Fiscal Studies, 2017

Author affiliation

/Organisation/COLLEGE OF SOCIAL SCIENCES, ARTS AND HUMANITIES/Department of Economics

Version

  • AM (Accepted Manuscript)

Published in

Fiscal Studies

Publisher

Wiley

issn

0143-5671

eissn

1475-5890

Acceptance date

2017-11-09

Copyright date

2017

Publisher version

https://onlinelibrary.wiley.com/doi/abs/10.1111/1475-5890.12161

Notes

The file associated with this record is under embargo until 24 months after publication, in accordance with the publisher's self-archiving policy. The full text may be available through the publisher links provided above.

Language

en

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