ERF 26th Annual Conference
Do Non-natives Catch-up with the Natives in Terms of Earnings in Jordan? New Evidence from Distributional Analysis of Individual Data from JLMPS 2010-2016
No.
ERF26_170
Publisher
ERF
Date
August, 2020
Topic
J. Labor and Demographic Economics
In the current study, we endeavor to bring a new evidence to the existing literature about the inequality in the Jordanian labor market. Using a nationally representative data set extracted from the Jordanian Labor Market Panel Survey (JLMPS) for the two years 2010 and 2016, we apply both Oaxaca-Blinder decomposition approach and the RIF-based decomposition to provide a detailed examination of the structure and dynamics of the wage inequality between native and non-native workers along the wage distribution in Jordan, and to reveal which part of the wage differentials between the two groups may be explained by differences in productive characteristics (composition effects) and which part may results from differences in returns to such characteristics (discrimination effects). We find an increasing in the average wage gap between the two groups over time, and an intensification of the discrimination against non-natives in Jordan labor market over time. This discrimination increases with the quantiles of the wage distribution in both 2010 and 2016 except for the 90th quantile. The wage differentials are larger in the bottom and median parts of the wage distributions for both 2010 and 2016. The compositional differences in the education attainment between natives and non-natives explain significantly the wage gap only in 2010 but not in 2016. The main drivers of the unexplained component (discrimination effect) of the total wage gap between natives and non-natives appears to stem from the education covariate in both 2010 and 2016.
Research Fellows
Hatem Jemmali
Associate Professor, University of Manouba
Research Fellows
Rabeh Morrar
Director of Research, Palestine Institute for Economic...