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Native-immigrant wage differentials in Greece: discrimination and assimilation

Chletsos, Michael and Roupakias, Stelios (2012): Native-immigrant wage differentials in Greece: discrimination and assimilation.

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Abstract

This paper applies the Blinder-Oaxaca methodology in order to decompose the average earnings differentials between Greek workers and different groups of immigrants. We use information about 8,429 individuals of which 1,185 are immigrants. The data are drawn from the Greek Labor Force Survey (2009). The main objective is to explore how much of the differential is explained by differences in observed characteristics. We also investigate the effect that assimilation has on the immigrants’ earnings. Our results provide empirical evidence that the part of the wage gap due to differences in the coefficients is largest for immigrants originating from non-EU countries and negative for those immigrants who terminated education in Greece. Also, there is evidence that: (i) post-migration human capital is a significant determinant of immigrants earnings and (ii) human capital acquired in the countries of origin is not perfectly transferable.

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