Home>Wage inequality between natives and migrants: Access to high-paying jobs as a the key factor

08.09.2025

Wage inequality between natives and migrants: Access to high-paying jobs as a the key factor

Wage inequality between natives and migrants: Access to high-paying jobs as a key factor

 Olivier Godechot & Mirna Safi  

This new study analyzing data from 13.5 million workers across nine wealthy countries highlights a striking finding: the wage gap between migrants and natives is driven largely by migrants’ limited access to high-paying roles, rather than lower pay for the same jobs.

Access to well-paid jobs is crucial. Three-quarters of the observed wage gap are explained by the underrepresentation of migrants in top-paying companies and occupations.

Closing the pay gap at the same job isn’t enough. While equal pay for equal work matters, most of the wage gap comes from who gets the best jobs.

Barriers to access: Language training, credential recognition, job-search assistance, placement networks, and addressing recruitment and promotion biases are essential ways to break down barriers.

Lasting—but not permanent—effect: Wage differences decrease for children of immigrants born in their new countries, indicating that language and degree recognition hurdles mostly impact the first generation.

A shared pattern: These findings are consistent across countries, but migrants from Africa, the Middle East, Latin America, and Asia face the biggest challenges.

Boosting migrants’ entry into high-paying sectors and occupations would significantly narrow wage gaps—a vital issue for fairer societies. 

Explore all the details and data in the original article:


 

(credits: Qvils, via Shutterstock)