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The ethnic wage gap in Australia - when accounting for linked employer-employee data

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posted on 07.06.2017, 03:41 by Reiman, Cornelis, Zambruno, Edoardo
The Australian Workplace Industrial Relations Survey 1995 allows for a thorough review of how an employee's ethnic characteristics and English proficiency can affect their levels of hourly earnings. A human capital model is specified, with random effects regression analysis allowing the comparison of appropriately paired data sets. Results reported in this paper suggest that Anglo-Saxon employees earn more than non-Anglo-Saxon employees, just as English speaking employees earn more than non-English speaking % employees. Interestingly, though, it is found that non-Australian-born employees earn more in terms of hourly income than Australian-born employees. Further ethnic segmentation of the data provides considerable insight as to factors that affect the earnings potential of Australia's diverse workforce.


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Working paper series (Monash University. Department of Management).

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