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For Spain, the biggest losses are between the 20th and the 40th percentile of the initial mean wage distribution.
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Using Labour Force Survey data, the paper employs a methodology (Blinder-Oaxaca quantile regressions) to decompose the immigrant-native wage differential at the mean and across the conditional wage distribution.
Comparing actual wages to the Mincer predictions reveals that aggregate wage growth gives more accurate forecasts over the wage distribution than average wage growth.
(2015), and we assign values for mean wages per deciles proposed by the authors and trim the bottom and top 1% of the wage distribution.
High unemployment harms wage growth across the wage distribution with the negative effect getting larger as one moves down the distribution.
It's also a matter of assisting the broader middle class and achieving a more fair and equitable wage distribution.
For example, the upper-left estimate means that a 100% increase in the living wage (e.g., from a $5 minimum wage to a $10 living wage) would increase wages in the bottom decile of the wage distribution by 0.04 log points, or approximately 4%.
Overall, the evidence indicated that living wages raise wages at the bottom of the wage distribution.
Table 5 Occupations, mean wage, and education.
a Is based on mean wage in 1995, b, c based on mean wage in 2010.
To estimate the wage distribution, we only use individuals who reported a positive hourly wage.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com