Arbeitspapier

Task specialization and the native-foreign wage gap: Evidence from worker-level data

Running RIF regressions to decompose wage differences along the distribution, this is the first study documenting that worker-level variation in tasks has played a key role in the widening of the German Native-Foreign Wage Gap. Comparing variation in Individual- vs Occupation-level task measures suggests idiosyncratic differences account for up to 34% of the explained wage gap. Importantly, natives specialize in high-paying interactive activities not only between but also within occupations. In contrast, foreign workers specialize in low-paying manual activities. This enhanced degree of task specialization accounts for 11% of the gap near the top of the distribution and 25% near the bottom, thus offering new insight into sources for imperfect substitution of native and foreign workers in the production function and consequently small migration-induced wage effects.

ISBN
978-3-96973-086-7
Sprache
Englisch

Erschienen in
Series: Ruhr Economic Papers ; No. 928

Klassifikation
Wirtschaft
Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
Labor Force and Employment, Size, and Structure
Human Capital; Skills; Occupational Choice; Labor Productivity
Wage Level and Structure; Wage Differentials
Geographic Labor Mobility; Immigrant Workers
Thema
Wage Gap
individual job task data
RIF decomposition
task specialization within occupations

Ereignis
Geistige Schöpfung
(wer)
Storm, Eduard
Ereignis
Veröffentlichung
(wer)
RWI - Leibniz-Institut für Wirtschaftsforschung
(wo)
Essen
(wann)
2021

DOI
doi:10.4419/96973086
Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Storm, Eduard
  • RWI - Leibniz-Institut für Wirtschaftsforschung

Entstanden

  • 2021

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