Working Papers
Do Non-Natives Catch-Up with The Natives in Terms of Earnings in Jordan? New Evidence from A Distributional Analysis
No.
1420
Publisher
ERF
Date
November, 2020
Topic
J7. Labor Discrimination
E2. Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy
J3. Wages, Compensation, and Labor Costs
O1. Economic Development
Using a nationally representative data set extracted from the Jordanian Labor Market Panel Survey (JLMPS) for the two years 2010 and 2016, we examine the wage differentials between natives-born workers and migrants in Jordan's labor market. By applying Oaxaca–Blinder and quantile decomposition methods we decompose the distributional wage differentials into endowment effects, explained by differences in productivity characteristics, and discrimination effects attributable to unequal returns to covariates. We find an increasing average wage gap in favor of residents workers over time. The wage differentials are found to be larger at the bottom and middle parts of the wage distributions in both 2010 and 2016. The compositional differences in education between natives and non-natives explain significantly the wage gap only in 2010 but not in 2016, while main drivers of the unexplained component (discrimination effect) of the average wage gap appears to stem from the education covariate in both 2010 and 2016. We also find that discrimination against migrant workers increases with the quantiles of wage distribution in both 2010 and 2016 except for the 90th quantile.
Research Fellows
Hatem Jemmali
Associate Professor, University of Manouba
Research Fellows
Rabeh Morrar
Director of Research, Palestine Institute for Economic...