April 2010

IZA DP No. 4892: Immigrants at New Destinations: How They Fare and Why

published in: Journal of Population Economics, 2012, 25 (3), 1165-1185

Using matched employer-employee data, we identify the determinants of immigrants’ earnings in the Portuguese labor market. Results previously reported for countries with a long tradition of hosting migrants are also valid in a new destination country. Two-thirds of the gap is attributable to match-specific and employer characteristics. Occupational downgrading and segregation into low-wage workplaces are two major causes behind the wage gap.