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Immigrants at new destinations: how they fare and why

Anabela Carneiro, Natércia Fortuna and José Varejão
Journal of Population Economics
Vol. 25, No. 3 (July 2012), pp. 1165-1185
Published by: Springer
Stable URL: http://www.jstor.org/stable/41488382
Page Count: 21
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Immigrants at new destinations: how they fare and why
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Abstract

We explore matched employer-employee data for a new destination of international migrants in Europe—Portugal. We conclude that the difference between the earnings of immigrants and natives with similar personal characteristics is for the most part due to the characteristics of the matches they form, immigrants being penalized on two different counts: absence of match-specific human capital and occupational downgrading. Moreover, we show that non-random sorting across workplaces has a significant detrimental effect on immigrants' wages. This is the flip side of joining migrant-crowded workplaces.

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