abstract: 'We use longitudinal data from the income tax system to study the impacts of firms'' employment and wage-setting policies on the level and change in immigrant-native wage differences in Canada. We focus on immigrants who arrived in the early 2000s, distinguishing between those with and without a college degree from two broad groups of countries - the U.S., the U.K. and Northern Europe, and the rest of the world. Consistent with a growing literature based on the two-way fixed effects model of Abowd, Kramarz, and Margolis (1999), we find that firm-specific wage premiums explain a significant share of earnings inequality in Canada and contribute to the average earnings gap between immigrants and natives. In the decade after receiving permanent status, earnings of immigrants rise relative to those of natives. Compositional effects due to selective outmigration and changing participation play no role in this gain. About one -sixth is attributable to movements up the job ladder to employers that offer higher pay premiums for all groups, with particularly large gains for immigrants from the ``rest of the world{''''}countries. Crown Copyright (c) 2021 Published by Elsevier B.V. All rights reserved.' affiliation: 'Dostie, B (Corresponding Author), HEC Montreal, Montreal, PQ, Canada. Dostie, Benoit; Parent, Daniel, HEC Montreal, Montreal, PQ, Canada. Li, Jiang, Stat Canada, Ottawa, ON, Canada. Card, David, Univ Calif Berkeley, Berkeley, CA USA. Card, David, NBER, Cambridge, MA USA.' author: Dostie, Benoit and Li, Jiang and Card, David and Parent, Daniel author-email: benoit.dostie@hec.ca author_list: - family: Dostie given: Benoit - family: Li given: Jiang - family: Card given: David - family: Parent given: Daniel da: '2023-09-28' doi: 10.1016/j.jeconom.2021.07.012 earlyaccessdate: MAR 2023 eissn: 1872-6895 files: [] issn: 0304-4076 journal: JOURNAL OF ECONOMETRICS keywords: 'Wage differentials; Immigrants; Linked employer -employee data; Firm effects' keywords-plus: 'LABOR-MARKET ACTIVITY; HIGH WAGE WORKERS; WORKPLACE HETEROGENEITY; CANADA; PERFORMANCE; SELECTION; MOBILITY; RETURNS; FOREIGN; FAMILY' language: English month: APR number: '2' number-of-cited-references: '55' pages: 544-567 papis_id: 042fd44dba08f298fc7844c7779e00f3 ref: Dostie2023employerpolicies times-cited: '2' title: Employer policies and the immigrant-native earnings gap type: article unique-id: WOS:000993998400001 usage-count-last-180-days: '2' usage-count-since-2013: '2' volume: '233' web-of-science-categories: 'Economics; Mathematics, Interdisciplinary Applications; Social Sciences, Mathematical Methods' year: '2023'