@TechReport{iza:izadps:dp18206,
            	author={Maré, David C. and Fabling, Richard},
            	title={Firms and Ethnic Wage Differences},
            	year={2025},
	month={Oct},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={18206},
            	url={https://www.iza.org/index.php/publications/dp18206},
	abstract={We examine the contribution to ethnic earnings gaps of differences in the firms where different ethnic groups work. We use linked employer-employee data to estimate worker and firm pay premiums (fixed effects), adapting existing methods to deal with multiple-response ethnicities and weighting. The sorting of workers across firms contributes 10-26 percent of within-ethnicity gender gaps but affects average earnings for men or women within ethnic groups by less than 1 percent, in the face of average ethnic earnings gaps of up to 14 percent. We conclude that within-firm earnings differences are the dominant source of ethnic earnings gaps.},
	keywords={two-way fixed effects;sorting;ethnicity;earnings;linked employer employee data},
            }