%0 Report
        %A Maré, David C.
%A Fabling, Richard
        %T Firms and Ethnic Wage Differences
        %D 2025
        %8 2025 Oct
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 18206
        %U https://www.iza.org/index.php/publications/dp18206
        %X 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.
        %K two-way fixed effects
%K sorting
%K ethnicity
%K earnings
%K linked employer employee data