Discussion Paper Details

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Title: Occupational Sorting and Wage Gaps of Refugees

Author(s): Christopher F Baum, Hans Lf, Andreas Stephan and Klaus F Zimmermann

Publication Date: June 2020

Keyword(s): Blinder-Oaxaca decomposition, coarsened exact matching, correlated random effects model, Employer-employee data, Refugees and wage earnings gap

Programme Area(s): Labour Economics

Abstract: Refugee workers start low and adjust slowly to the wages of comparable natives. The innovative approach in this study using unique Swedish employer-employee data shows that the observed wage gap between established refugees and comparable natives is mainly caused by occupational sorting into cognitive and manual tasks. Within occupations, it can be largely explained by differences in work experience. The identification strategy relies on a control group of matched natives with the same characteristics as the refugees, using panel data for 2003-2013 to capture unobserved heterogeneity.

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Bibliographic Reference

Baum, C, Lf, H, Stephan, A and Zimmermann, K. 2020. 'Occupational Sorting and Wage Gaps of Refugees'. London, Centre for Economic Policy Research.