Wage gap for immigrants largely due to limited access to well-paid jobs

Immigrants in the Netherlands earn on average 15 percent less than people with a Dutch background. This difference is largely due to their limited access to well-paid sectors, companies, and positions. That is the conclusion of an international study recently published in the scientific journal Nature.

The study analyzed data from 13.5 million employees and employers across nine countries, including the Netherlands, Germany, and the United States. In all countries surveyed, people with a migration background earn on average 18 percent less. In the Netherlands, the wage gap is 15.4 percent, two-thirds of which is explained by "sorting": immigrants are less likely to end up in better-paying jobs. One third of the wage gap stems from unequal pay within the same role.

Among immigrants from the Middle East and Africa, the gap rises to as much as 25 percent. Notably, for the children of immigrants the gap is significantly smaller —averaging 5.5 percent—and is entirely explained by unequal access to well-paid positions. Within the same job, no pay gap remains.

According to sociologist Zoltán Lippényi, one of the researchers involved in the study, the findings highlight that policies should not focus solely on equal pay, but more importantly on improving access to better-paying jobs. Language training, diploma recognition, career support, and addressing bias in recruitment and promotion are key to achieving this. The researcher also advocates addressing potential biases in recruitment and promotion.