Do Non-natives Catch-up with the Natives in Terms of Earnings in Jordan? New Evidence from a Distributional Analysis
Publication Type
Conference Paper

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 unconditional quantile regressions, which drawn on the
Recentered Influence Function (RIF) regression 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 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). This study finds 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. the wage differentials are larger in
the bottom and median parts of the wage distributions in both 2010 and 2016. The
compositional differences in education between natives and non-natives explain
significantly the wage gap only in 2010 but not in 2016, while main drivers of the
unexplained component (discrimination effect) of the wage gap between natives and non-
natives at the mean appears to stem from the education covariate in both 2010 and 2016.
We also find that the discrimination against migrant workers increases with the quantiles
of the wage distribution in both 2010 and 2016 except for the 90th quantile.

Conference Title
ERF 26th Annual Conference on Sustainable Development Goals (SDGs) as a Framework for MENA’s Development Policy
Conference Country
Conference Date
March 30, 2020 - April 2, 2020
Conference Sponsor
Economic Research Forum
Additional Info
Conference Website