@TechReport{iza:izadps:dp14960, author={Aslund, Olof and Bratu, Cristina and Lombardi, Stefano and Thoresson, Anna}, title={Firm Productivity and Immigrant-Native Earnings Disparity}, year={2021}, month={Dec}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={14960}, url={https://www.iza.org/index.php/publications/dp14960}, 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.}, keywords={firm productivity;immigrant-native earnings gaps;wage inequality}, }