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Title: Mind the Gap: A Detailed Picture of the Immigrant-Native Earnings Gap in the UK using Longitudinal Data between 1978 and 2006
Authors: Lemos, Sara
First Published: 15-Dec-2016
Publisher: Elsevier
Citation: Regional Science and Urban Economics, 2017, 63, pp. 57–75
Abstract: Using the underexplored, sizeable and long Lifetime Labour Market Database (LLMDB), we estimated the immigrant-native earnings gap across the entire earnings distribution, across continents of nationality, across cohorts of arrival, across years and across regions in the UK between 1978 and 2006. We exploited the longitudinal nature of our data to separate the effect of observed and unobserved individual characteristics on earnings. In keeping with the limited existing UK literature, we found a clear and wide dividing line between whites and non-whites in simple comparable models. However, in our more complete models, when we accounted for unobservable individual characteristics – an important contribution of this paper – we found a much narrower and subtler dividing line. This suggests that the labour market primarily rewards individual characteristics other than immigration status. This, in turn, facilitates the assimilation of immigrants into the UK labour market. We also found that the lowest paid immigrants, whom are disproportionately non-white, suffer an earnings penalty in the labour market, whereas higher paid immigrants, whom are disproportionately white, do not. Finally, we found less favourable earning gaps for cohorts that witnessed proportionately larger non-white and lower paid white immigration.
DOI Link: 10.1016/j.regsciurbeco.2016.11.001
ISSN: 0166-0462
Embargo on file until: 15-Jun-2018
Version: Post-print
Status: Peer-reviewed
Type: Journal Article
Rights: Copyright © Elsevier, 2017. Deposited with reference to the publisher’s open access archiving policy.
Description: JEL classification: J24 J31 J61 J71 J82 F22.
The file associated with this record is under embargo until 18 months after publication, in accordance with the publisher's self-archiving policy. The full text may be available through the publisher links provided above.
Appears in Collections:Published Articles, Dept. of Economics

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