TY  - RPRT
        AU  - Dostie, Benoit
AU  - Li, Jiang
AU  - Card, David
AU  - Parent, Daniel
        TI  - Employer Policies and the Immigrant-Native Earnings Gap
        PY  - 2020/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 13245
        UR  - https://www.iza.org/publications/dp13245
        AB  - We use longitudinal data from the income tax system to study the impacts of firms' employment and wage-setting policies on the level and change in immigrant-native wage differences in Canada. We focus on immigrants who arrived in the early 2000s, distinguishing between those with and without a college degree from two broad groups of countries – the U.S., the U.K. and Northern Europe, and the rest of the world. Consistent with a growing literature based on the two-way fixed effects model of Abowd, Kramarz, and Margolis (1999), we find that firm-specific wage premiums explain a significant share of earnings inequality in Canada and contribute to the average earnings gap between immigrants and natives.
In the decade after receiving permanent status, earnings of immigrants rise relative to those of natives. Compositional effects due to selective outmigration and changing participation play no role in this gain. About one-sixth is attributable to movements up the job ladder to employers that offer higher pay premiums for all groups, with particularly large gains for immigrants from the "rest of the world" countries.
        KW  - wage differentials
KW  - immigrants
KW  - linked employer-employee data
KW  - firm effects
        ER  -