Page 233 - Contributed Paper Session (CPS) - Volume 1

CPS1284 Rabeh M.
Non - 1.363** 2.378*** 3.331**
refugees * *
(0.0154) (0.0107) (0.0133
)
difference - -0.144*** -
0.236*** 0.251**
*
(0.0238) (0.0157) (0.0171
)
explained - -0.0345*** -
0.197*** 0.103**
*
(0.0176) (0.0117) (0.0100
)
unexplained -0.0390 -0.110*** -
0.148**
*
(0.0249) (0.0156) (0.0180)

General -0.274*** 0.0343 -0.05*** 0.0724 -0.036*** -0.255
characteristic
s
(0.0163) (0.242) (0.0107) (0.153) (0.00960) (0.182)

Industry 0.0467*** -0.0411* -0.00164 0.0371*** -0.059*** 0.0102

(0.0122) (0.0215) (0.00706) (0.0137) (0.00745) (0.0163)

Occupation 0.0311*** -0.00222 0.022*** -0.0344 -0.00739 -0.0857**

(0.00873) (0.0526) (0.00548) (0.0331) (0.00587) (0.0383)

Constant -0.0299 -0.185 0.182

(0.247) (0.157) (0.185)

Observations 17,264 17,264 17,264 17,264 17,264 17,264 17,264 17,264 17,264
Standard errors in parentheses

*** p<0.01, ** p<0.05, *
p<0.1

The quantile decomposition results in Table 2. The results of such
decomposition reveal some important findings. First, the wage differentials are
found to be much larger at higher and lower deciles than at the middle part
of wage distribution. The overall wage gap at the 10th and 90th percentile is
respectively 23.60% and 25.1%, compared with 14.4% at the median. Second,
the results show that only the composition effect is found to drive the overall
wage gap at the first quantile; no significant effect of the discrimination part
is observed at this part of distribution. More specifically at the first quantile,
the general characteristics variables are found to be the main drivers of the
wage gap with being 27.4%. The figure is different when turning to the second
quantile (median); at this part of the distribution the discrimination effect is
found to be the main driver of the wage gap (11% against 3.45% for the
composition effect). at this quantile, the Industry dummies contribute to this
unexplained part by -3.71%. The difference in magnitude between the
discrimination and composition effects is narrowing at the end of the wage
distribution with being 10.3% for the composition effect and 14.8% for the

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