TY  - RPRT
        AU  - Maré, David C.
AU  - Fabling, Richard
        TI  - Firms and Ethnic Wage Differences
        PY  - 2025/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 18206
        UR  - https://www.iza.org/index.php/publications/dp18206
        AB  - 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.
        KW  - two-way fixed effects
KW  - sorting
KW  - ethnicity
KW  - earnings
KW  - linked employer employee data
        ER  -