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Private Versus Public Sector Wage Gap: Does Origin Matter?
Author(s) -
Berson Clémence
Publication year - 2016
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/meca.12118
Subject(s) - wage , immigration , differential (mechanical device) , public sector , economics , private sector , labour economics , demographic economics , economy , political science , economic growth , engineering , law , aerospace engineering
The integration of immigrants and their children is a burning issue in France. Governments mainly build their integration policies on the labour market. The public sector is reputed to better assimilate minorities because of its entrance exams and pay scales. In this article, using a switching model, a comparison of the public and private sectors shows that second‐generation immigrants are not treated equally in both sectors. A wage gap is observed between workers of French origin and those of Southern European origin. The wage differential between workers of French and North African origins is mostly explained by observable variables.